The Silicon Valley venture capital firm Andreessen Horowitz, also known as a16z, has raised $2.2 billion for a new crypto fund. This the company’s third crypto fund, which according to its announcement is the largest of its kind. Founded in 2009 by Marc Andreessen and Ben Horowitz, Andreessen Horowitz invests in both early-stage and established companies. It plans to deploy its newest multi-million dollar reserve across several crypto networks and startups. Andreessen Horowitz(a16z) Stepped Into Crypto Sphere With Coinbase The venture capital firm launched its first crypto fund in 2018 when Bitcoin and other cryptocurrencies shed nearly 50% of their value. Back then, Bitcoin alone shaved off 80% of its gains since its highs in 2017. The firm’s latest fund-raising also comes at another volatile phase for the crypto market. The bellwether cryptocurrency has been on a bumpy ride since mid-April when it recorded its highest price at $65,000. However, since then Bitcoin has lost nearly half of those gains, with projections indicating it may record a 20% loss in this week alone. Despite the recent price fluctuations, Katie Haun and Chris Dixon, partners at Andreesen, who will co-lead the new “Crypto Fund III”, are extremely optimistic about the future of digital assets. In a blog post published by the company, the duo wrote, “prices may fluctuate but innovation continues to increase through each cycle.” Furthermore, they noted, “We believe that the next wave of computing innovation will be driven by crypto,” while adding that they were “radically optimistic” about the potential of the industry. The firm is known to have made some lucrative early bets in tech behemoths like Facebook, Instagram, Pinterest, and Lyft. It made its debut in the digital assets sector in 2013 via its investment in Coinbase. That decision turned out remarkable for the company as it netted $440 million following the exchange’s public listing on Nasdaq. Andreessen to Hire a String of High-Profile Employees In addition to securing more than $2 billion in funds, Andreessen has also ramped up its hiring to allocate talent for its expanding activities. The company has onboarded a string of high-profile employees who are either financial industry veterans or former government officials. For instance, last year the company welcomed former chief regulatory officer of the New York Stock Exchange(NYSE), Anthony Albanese, who will take over the COO’s position at a16z crypto. The company has also hired former Securities and Exchange Director Bill Hinman, who will perform the duties of an advisory partner, and Rachel Horowitz, a veteran communication strategist from Silicon Valley, who will join as an operating partner.
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