As of May 2020, when the crypto economy was still turbulent due to concerns about the coronavirus outbreak and the depressing global financial outlook, in general, private venture capital firm Andreessen Horowitz (a16z) revealed a $500 million “crypto fund” II”. A report published on May 27 by technology writer Eric Newcomer indicated that Andreessen Horowitz is considering raising $2 billion for the next crypto fund.
A former Bloomberg reporter said “a16z is doubling up encryption”
The well-known venture capital firm Andreessen Horowitz, founded by Marc Andreessen and Ben Horowitz in 2009, has always been the driving force of the crypto industry in financing projects and startups. Marc Andreessen has always believed in Bitcoin for some time, and a16z has injected millions of dollars into the industry in the past eight years.
Recently, Andreessen Horowitz (Andreessen Horowitz) launched two funds dedicated to the development of “encrypted networks and services.” Bitcoin.com News reported the last adventure revealed by a16z executives Katie Haun and Chris Dixon, when the two revealed Crypto Fund II.
This particular fund invested $515 million in networks, startups, and enterprises dedicated to the blockchain and crypto asset industry. Now, Eric Newcomer, a former technology writer at Bloomberg, has detailed a16z’s third crypto fund “under negotiation to raise $2 billion.”
Newcomer said: “Andreessen Horowitz is using cryptocurrency to raise funds threefold and has raised the third cryptocurrency fund since 2018.” “The source told me, Andreessen Horowitz. The goal of the third crypto fund is $2 billion. This is twice as many people expect.” He added.
A16z, someone familiar with the “newcomer” problem before the market downturn, sold “at least some Ethereum holdings”
Newcomer sources also revealed that Andreessen Horowitz “distributed at least some Coinbase shares shortly after Coinbase’s listing.” In addition, the company holds Ethereum (ETH). A source familiar with a16z’s operations said, “After the price plummeted Previously, the company sold part of its Ethereum assets for at least $3,800.”
The report further added that as the paradigm of Fred Ehrsam and Matt Huang has been making waves, there seems to be an “arms race” in cryptocurrency investment. “Andreessen Fund and Paradigm enjoy crazy status. I heard that some Andreessen Horowitz partners are Paradigm limited partners,” the author’s report details.
On the same day, a16z revealed its investment in Talos, a cryptocurrency company, and Newcomer also stated that he heard “a lot of buzz about Uniswap investment”. Of course, similar to Bloomberg’s report, Newcomer’s source is also a person familiar with the matter.
“Seeing who dives into cryptocurrency is as interesting as seeing who decides to make this gold rush. But Andreessen Horowitz looks likely to fund the next Coinbase,” Newcomer concluded.
What do you think of Andreessen Horowitz doubling its crypto fund to $2 billion? Please tell us your thoughts on this topic in the comments section below.
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