Venture Capital: Andreessen Horowitz Floats Third Crypto Fund For $2.2B
a16z believes that the next wave of computing innovation will be driven by crypto.
Andreessen Horowitz, the Silicon Valley venture giant that took a trail-blazing bet on Coinbase (NASDAQ: COIN) and had already raised $815 million in two earlier funds, is scaling up its commitment to crypto and blockchain. a16z announced today a new $2.2 billion “Crypto Fund III” in the face of the dramatic volatility in bitcoin’s price, its increasingly sullied climatic image, and the role of crypto in criminal activities such ransom attacks. (The Economic Times)
a16z: Unshaken belief in the potential of crypto
“We are radically optimistic about crypto’s potential to restore trust and enable new kinds of governance where communities collectively make important decisions about how networks evolve, what behaviors are permitted, and how economic benefits are distributed,” the venture fund said in a blog post today.
“We believe that the next wave of computing innovation will be driven by crypto,” it added.
Andreessen Horowitz got in to crypto on the ground floor so to speak with some spectacular bets on key players in the place with its earlier funds. These include the aforesaid Coinbase, NBA Top Shot maker Dapper Labs, blockchain infrastructure startup Dfinity, and Uniswap, which is poised to be a major player in the Ethereum ecosystem.
The new, all-stage fund will invest in the most exciting areas of cryptos as did Crypto Fund II including next gen payments, decentralized finance, new business models that will harness the internet, and Web 3.
Holding entrepreneurs’ hands through the crypto journey
“As with any new computing movement, crypto has endured a variety of challenges and misconceptions,” a16z wrote in the blog announcing Crypto Fund III. “That’s why we are also bringing together heavy-hitters across several functions to help translate crypto to the mainstream.”
The firm said it was expanding its team to provide unrivaled regulatory and operational capabilities alongside its crypto-native data science and research services.
Key appointees include Bill Hinman, the former director of the U.S. Securities and Exchange Commission’s (SEC) division of corporation finance (as an advisory partner), and Tomicah Tillemann, who served as a senior adviser to U.S. President Joseph Biden and two Secretaries of State and was chairman of the Global Blockchain Business Council (as global head of policy).
Also coming on board is Brent McIntosh, who served as under secretary of the Treasury for International Affairs and coordinated the G7’s work on cryptocurrencies (as advisory partner).
Related Story: Andreessen Horowitz Closes Two New Funds Worth $4.5B
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