In May 2020, when the crypto economy was still turbulent over fears of the coronavirus outbreak and a gloomy global financial outlook in general, private venture capital firm Andreessen Horowitz (a16z) unveiled a 500-million-dollar “Crypto Fund II”. A report published on May 27 by tech writer Eric Newcomer states that Andreessen Horowitz is considering financing $ 2 billion for the next crypto fund.
Former Bloomberg reporter says ‘in process of tripling down on a16z crypto’
Renowned venture capital firm Andreessen Horowitz, founded by Mark Andreessen and Ben Horowitz in 2009, has been a driving force in the crypto industry in relation to financing projects and startups. Mark Andreessen has been a firm believer in bitcoin for some time and during the last eight years a16z has invested millions of dollars in the industry.
In recent days, Andreessen Horowitz launched two funds dedicated to the development of “crypto networks and businesses.” Bitcoin.com news Reported on the final venture revealed by a16z executives Katie Hawn and Chris Dixon when they both revealed Crypto Fund II.
That specific fund invested $515 million in networks, startups and businesses dedicated to the blockchain and crypto asset industry. Now a former Bloomberg technical writer, Eric newcomer, details that a16z third crypto fund is “in talks to raise $2 billion.”
“Andreessen Horowitz is in the process of going down three times on crypto, raising his third crypto fund since 2018,” newcomer said. “Sources tell me that Andreessen Horowitz is targeting $2 billion for his third crypto fund. This is twice the size that many people are expecting,” he said.
Someone familiar with the matter told newcomer a16z sold ‘at least some of its Ethereum holdings’ before the market downturn.
The newcomer’s source also revealed that Andreessen Horowitz “distributed at least some Coinbase shares shortly after Coinbase went public.” In addition, the firm had Ethereum (ETH) “The firm sold some of its Ethereum holdings for about $3,800 before the price fell,” said a source familiar with the holdings and operations of a16z.
The report further noted that there appears to be an “arms race” in cryptocurrency investment as the paradigms of Fred Ehrsam and Matt Huang are making waves. “Andreessen has a frenzied position in the fund and paradigm. I have heard that some Andreessen Horowitz partners are limited partners in the paradigm,” the author’s report details.
The same day, a16z disclosed an investment in crypto firm Talos, with the newcomer also saying that he hears “a lot of buzz about the investment Uniswap”. Of course, similar to Bloomberg’s reporting, Newcomer’s source is someone familiar with the matter.
“It will be equally interesting to see who dives into crypto as it remains to be seen who decides to pull out this GoldRush. But Andreessen Horowitz feels it will be in a good position to fund the next coinbase, “Newcomer concluded.
What do you think of Andreessen Horowitz tripling his crypto fund to $ 2 billion? Tell us what you think about this topic in the comments section below.
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