Andreessen Horowitz, also known as a16z, seems to be on the way to become the largest crypto currency investment. According to a story published in the Financial Times on Friday, he is developing the third investment fund.
Andreessen Horowitz, a venture capital group, is planning to create a $1 billion fund to invest in digital assets and crypto-focused startups.
The news comes after the Successful launch of Coin base, which is the digital currency exchange, primarily sponsored by Andreessen that went public earlier this month and is now estimated at about $60 billion, as well as direct investments in digital currencies that have appreciated over the past year and it had made an excellent direct listing launch earlier this month.
Cryptocurrency venture investors have started to profit from Coinbase, the digital currency exchange that went public earlier this month and is now estimated at about $60 billion, as well as direct investments in virtual currencies that have risen in value over the past year.
According to the Financial Times, the Silicon Valley venture capital firm is going high on its third crypto venture fund, and a16z is aiming to raise between 800 million USD and 1 billion USD for the new fund, according to four sources familiar with the process.
Despite the uncertain legislative framework for vast swaths of the industry, these returns have prompted institutional investors such as resource endowment and foundations to refresh their bets on emerging technology. Last month, investors including Sequoia Capital China dedicated $225 million to Dragonfly Capital’s second cryptocurrency fund, more than double the amount collected for the first edition in 2018.It has the potential to more than double a16z’s existing crypto investment fund of $515 million. That will make it one of the biggest crypto funds in the world, potentially twice as big as its predecessor.
Andreessen’s funding campaign arrives when other cryptocurrency enthusiasts are amassing massive war chests fueled by a booming interest in bitcoin, ethereum, and other digital currencies.
The news is provided following the public listing of Coinbase, in which A16z was honored for its early sponsorship of the crypto exchange.
On April 14, the day the stock made its debut in Nasdaq, A16z cashed $449.2 million into the COIN stock for the sake of its buyers.
With cryptocurrency rates nearing all-time highs, a16z aims to attract shareholders Interested in building the next Coinbase.
Andreessen Horowitz’s investment in Coinbase was one of the company’s biggest hits, valued at $11.2 billion at the time of the exchange’s first trades. According to corporate filings, Coin base has sold almost $120 million in shares since becoming public.
Andreessen is a major investor of decentralized finance ventures after raising the first crypto currency fund in 2018 and was one of the founding partners of the Facebook-backed Libra network, now recognized as Diem.
Press Time did not answer a call for comment sent to a16z. The FT said the company refused to comment on the situation.