A venture capital firm known as Andreessen Horowitz (a16z) has made significant investments in the cryptocurrency sector in the past. Most recently, it has announced that it is currently trying to generate $4.5 billion for new crypto funds. This total is more than quadruple the size of its previous $2.2 billion cryptocurrency fund, which debuted in June of last year.
Should the fund be successful, it shall be the company's fourth large-scale investment of its kind. Its inaugural fund was opened in 2018 for $300 million, and its second fund was launched in 2020 for $515 million. It also oversees more than $3 billion in cryptocurrency firms and protocols across 3 funds.
Moreover, each a16z cryptocurrency fund was bigger than the previous one, indicating that there is increased interest as well as demand in this field which presently shows little to no signs of slowing down anytime soon.
&lsquoWe're still early'
Bitcoin (BTC) has been around for a long time now, and although there have been numerous fluctuations with its price over the past decade, many believe that we are still relatively early as far as reaching the true potential of crypto is concerned. Andreessen Horowitz believes this as well, which led it to claim that it has been regularly amazed and delighted by the vast range of inventive cryptocurrency-based concepts that have emerged over the years.
The firm went on to explain that it seems like the early days of the Internet, Web 2.0, social media and smartphones once again for everyone who has been active in the software business for a long time. However, not everyone wants increased mainstream crypto adoption as is made evident by countries in several continents considering more stringent regulations and even blanket bans.
a16z looks to raise additional funds
a16z reportedly informed investors that it aimed to raise a maximum of $3.5 billion for its most recent cryptocurrency venture fund, as well as an extra $1 billion for yet another fund focusing on early stage investments in virtual assets, all of which it claims shall be completed by March of this year.
Furthermore, the firm manages roughly $28 billion in assets across numerous funds in industries such as healthcare, fintech and cryptocurrencies. Its crypto portfolio hence includes 41 distinct firms at the moment, including industry heavyweights such as dYdX, Solana, Dapper Labs, Near, Phantom, Uniswap and OpenSea.