Updated 28 Jun, 2021

Andreessen Horowitz to Launch a $2.2bn Cryptocurrency Fund

Andreessen Horowitz to Launch

Key Takeaways:

  • Andreessen Horowitz secures $2.2bn to invest in the emerging cryptocurrency market
  • The move by the venture capital firm aims to elevate investors’ confidence in crypto

The Fundraising for the Third Digital Asset Fund Surpassed the Initial Goal

Andreessen Horowitz has finished its fundraising rounds for its third and largest crypto-focused investment fund. The Silicon Valley group has raised $2.2bn, surpassing the initial target of $800mn to $1bn. The company will set up its newest fund with the mission to fund “the next generation of visionary crypto founders.”

The newest investment vehicle by the venture capital firm aims to inspire a vote of confidence in the crypto market. The crypto industry is currently facing regulatory scrutiny in a number of countries. There has been strong demand from institutional investors who have more than doubled the initially sought funding. This could be interpreted as a sign that the market is still hot despite bitcoin’s price slipping more than 50% from all-time highs in April.

“We believe that the next wave of computing innovation will be driven by crypto,” the firm’s partners wrote in a blog post last week. “We’ve never been more excited about where crypto is headed and we’re going all in on the talented, visionary founders who are determined to be part of crypto’s next chapter.”

Crypto Fund III Aims to Support Crypto Projects in Need of Capital

Crypto Fund III, as it has been called, is the firm’s largest one. The previous two funds amounted to $350mn and $515mn. Similarly, this third one will be invested in cryptocurrencies and crypto projects looking for seed capital. The two previous funds were launched in 2018 and 2020. In fact, they have invested in startup companies in the crypto space such as decentralized exchange Uniswap, and Solana, a blockchain provider.

The high-profile venture capital firm recognizes the current crypto market environment as highly volatile. It believes “crypto is here to stay” as the nascent market is still “at the very early stages of what is possible.”

Andreessen Horowitz is a longtime cryptocurrency supporter. Meanwhile, he has been exploring and investing in the digital asset industry since 2013. In fact, Andreessen’s fundraising haul is the largest crypto-centered fundraising to date. Actually, it surpassed the pool of capital raised by Paradigm, a rival cryptocurrency investment firm that has raised a total of $1n in 2018.

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