Andreessen Horowitz intends to raise $4.5 billion to establish new cryptocurrency funds
According to the Financial Times, Andreessen Horowitz (commonly known as a16z) is looking to raise up to $4.5 billion for two new cryptocurrency funds.
The Silicon Valley venture capital company allegedly informed investors last week that it intends to raise $3.5 billion for its venture fund and another $1 billion for seed investments in the web3 area, with plans to be finalised in March. The Block attempted to reach out to a16z for comment but received no response by press time.
The development comes at a time when the digital asset industry is experiencing a financing frenzy. In November, crypto venture capital company Paradigm announced the formation of a $2.5 billion fund dedicated to web3 firms and protocols. Katie Haun, a former a16z partner, is reportedly seeking close to $900 million for a new venture capital company.
If a16z is successful in attracting investors, the $4.5 billion fundraising will be the biggest ever by a crypto venture investor. Additionally, it would indicate that investor trust in cryptocurrency is at an all-time high. According to The Block, crypto companies raised a record $29.1 billion last year.
Recent investments include a $20 million investment in crypto-friendly gaming platform Carry1st, a16z’s first in an African firm.
Additionally, the venture capital company reported earlier this month that it had raised $9 billion for its venture, growth, and biotech funds.