Andreessen Horowitz closes $4.5 billion crypto fund amid market turmoil

Regardless that crypto markets seem like on a protracted, arduous path forward based mostly on latest weeks of token turmoil, enterprise traders trying to get their arms on a Web3 future aren’t slowing down.

On Wednesday, enterprise capital large, A16Z, introduced closing its fourth cryptocurrency fund at $4.5 billion. This brings the full cash invested by Andreessen Horowitz in digital foreign money and blockchain enterprise to greater than $7.6 billion.

The brand new funding automobile will concentrate on early-stage concepts in addition to tasks which are extra mature and have already proven some traction. In accordance with the agency, $1.5 billion of the funding might be used for seed injections, whereas $3 billion might be devoted to enterprise investments.

Regardless of the present market downtown, the agency is optimistic about discovering contemporary prospects. Marc Andreessen, the co-founder of A16Z, commented that cryptocurrencies are nonetheless of their “early innings,” including that the market has quite a lot of development potential.

The fourth Crypto Fund has been within the works for a while; Cointelegraph first reported on it in January. It doubles the earlier crypto fund’s dimension and demonstrates the rising curiosity among the many agency’s restricted companions in boosting their publicity to cryptocurrency companies.

The brand new funding has come lower than a yr since Andreessen Horowitz introduced the launch of its $2.2 billion Crypto Fund III. A16z’s dominance has made waves within the crypto business all through latest months, with a number of crypto native firms like Paradigm and Electric Capital raising enormous sums to compete against it.

Related: $3B flows to metaverse and Web3 gaming this month as a16z tips in $600M

Formerly known for investments in Instagram and Slack, the firm first entered the crypto sector with an investment in Coinbase in 2013. It has since backed a number of crypto businesses, including Polychain Capital, OpenSea, Solana, Avalanche and Yuga Labs.