Even after facing a 40% loss in the crypto winter which started almost a year ago, Silicon Valley Andreessen Horowitz popularly known as a16z has announced that it still has billions to invest in cryptocurrency and Web3.0. According to 50-years old Chris Dixon who is a general partner of the venture capital firm, a16z is still very much healthy to take on billion-dollar crypto projects.
Almost eight months ago, Andreessen Horowitz launched its fourth fund for crypto and Web3.0. The Fund was dubbed ‘Crypto Fund 4’ and was introduced with a $4.5 billion capital base. The firm split the fund into two: $1.5 billion to be used for funding growth amongst startups at the seed stage, and the bulk ($3 million) for venture financing.
At the same time, the market was becoming more bearish than ever; rather, a16z saw it as a good opportunity.
Arianna Simpson, another general partner at Andreessen Horowitz said that “Bear markets are often when the best opportunities come about, when people are actually able to focus on building technology rather than getting distracted by short-term price activity.”
Today, Dixon explained that not up to 50% of Crypto Fund 4 has been deployed, therefore, the venture capital firm still has a larger percentage of the fund left.
Since the launch of its first fund four years ago, the firm has raised up to $7.6 billion for the crypto space. As it stands, a16z has an active crypto portfolio for up to 50 companies and is still looking at expanding its investment in the ecosystem.
A16z Invest in Several Crypto Projects
A16z, together with Sequoia Capital, supported crypto-oriented venture capital firm Dragonfly to acquire Metastable, an Ethereum (ETH) investor.
Also, a16z led a Series B funding round for Web3.0 decentralized startup Golden and eventually raised $40 million in the round. Other investors like Protocol Labs, OpenSea Ventures, DCVC, MVP Ventures, Vela Partners, and Socii Capital joined the round.
Most recently, private layer-2 chain Aztec Network raised $100 million in a Series B funding round from a16z, A Capital, SV Angel, King River, Variant, Hash Key, Fenbushu, and AVG.