Andreessen Horowitz to Launch New $450 Mln Cryptocurrency Fund

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Tue, 04/14/2020 - 18:46
Alex Dovbnya
Andreessen Horowitz is on track to raise $450 mln for its second cryptocurrency-oriented fund
Cover image via stock.adobe.com
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Venture capital behemoth Andreessen Horowitz is set to launch another fund that is solely dedicated to investing in the cryptocurrency industry, according to The Financial Times.  

a16z will reportedly raise $450 mln for its second crypto fund, but it is yet to determine its maximum size. 

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A major crypto bet 

Andreessen Horowitz launched its first dedicated fund for cryptocurrency investors back in 2018. It collected $350 mln to spend all this money on everything crypto -- from startups and obscure coins to Bitcoin (BTC). The holding period of the VC shop can stretch to a whole decade.   

Shortly after its launch, a16z Crypto received an investment from American investor David Swensen who runs Yale's $30 bln endowment.  

The firm is also a member of Facebook's Geneva-based Libra Association that has lost a slew of high-profile backers due to immense regulatory pressure.   

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Upping the ante   

Last November, Andreessen Horowitz launched a school for training cryptocurrency entrepreneurs, which underscored its commitment to the industry. 

The $450 mln crypto fund, however, appears to be a risky bet during the COVID-19 crisis. As reported by U.Today, a whopping 80 percent of crypto and blockchain startups are on the brink of bankruptcy in Zug's 'Crypto Valley.'       

Even before the deadly pandemic, venture capital funding for crypto companies plunged 40 percent in 2019. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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