Andreessen Horowitz Announces $4.5 Billion Web3 Fund amid Crypto Market Chaos


Despite the grim outlook for the crypto market based on the token turmoil of the past few weeks, venture capitalists looking to invest in the future of web3 are not taking their feet off the gas.

Andreessen Horowitz, who over the past few years has increased his headcount to increase the volume of his trades, recently closed his crypto fund and it’s amazing. The new $4.5 billion fund demonstrates growing interest among the company’s limited partners in doubling the size of its last cryptocurrency fund and increasing exposure to cryptocurrency startups. The company states that a third of its new mega-funds will be dedicated to seed trading.

Less than a year has passed since the company announced its $2.2 billion Crypto Fund III, and during that time the company has endured as much change as the broader crypto market. Crypto-based companies like Paradigm and Electric Capital have risen further in recent months, raising mega-funds to challenge a16z’s dominance. The company also withstood the exit of crypto co-leader Katie Haun, who broke up at 16z along with several colleagues, and launched Haun Capital with a $1.5 billion spread across both funds.

Crypto Fund IV continues to be led by longtime GP Chris Dixon, who has seemed to elevate his public persona in recent months, especially on Twitter. He is a breath-taking defense from detractors of the Web3 space, and occasionally quarrels with figures like Block’s Jack Dorsey. and Aaron Levie of Box. The continuing skepticism among many investors and entrepreneurs has grown in recent weeks due to the ugly collapse of the Terra ecosystem and its stablecoin, UST. It collapsed overnight, evaporating billions of dollars in value, renewing the fast-track demand among lawmakers. Legislation to regulate industry.

Asked if the market’s cooling would make incumbents fearful of continuing to bet on crypto, 16z’s Arianna Simpson told TechCrunch, “Although other companies are likely to withdraw,” “the size of our new fund is a source of excitement and faith.” It tells the level. We are in this category.”

When 16z announced its last blockchain fund, the crypto market had recently collapsed, but it will soon cause an impressive comeback, pushing the Bitcoin and Ethereum cryptocurrencies to new all-time highs. The outlook among crypto investors these days looks a bit less rosy as public tech stocks continue to take a hit. Both Robinhood and Coinbase are down more than 75% since their debut. Observers predict a turbulent time not only for cryptocurrencies, but also for technology. industry in general.

Andreessen Horowitz’s cryptocurrency sector is well-positioned to secure massive funding to continue expanding its operations, but the advent of uncertain times has left many new founders concerned about capital availability during another potential “crypto winter”. has been

“We cannot predict the future state of the market,” Simpson told TechCrunch. “But we work with the company to ensure we have enough capital to handle the storm.”

Subscribe to TechCrunch’s crypto newsletter “Chain Reaction” to hear news, funding updates, and hot takes on the wild world of web3 — our accompanying podcast!

Leave a Comment