Andreessen Horowitz launches $2.2 billion crypto fund

Andreessen Horowitz spouse Marc Andreessen

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Andreessen Horowitz is launching a multibillion-dollar fund to spend money on a unstable ecosystem it is making a bet will likely be as influential because the web.

The Silicon Valley undertaking capital company, based by way of Marc Andreessen and Ben Horowitz, introduced its new $2.2 billion cryptocurrency-focused fund on Thursday. It plans to deploy that capital throughout blockchain and virtual asset start-ups.

“The scale of this fund speaks to the scale of the chance earlier than us: crypto isn’t just the way forward for finance however, as with the web within the early days, is poised to become all sides of our lives,” Katie Haun and Chris Dixon, companions who run Andreessen’s cryptocurrency workforce, stated in a weblog publish.

The corporate’s first crypto-focused fund was once introduced 3 years in the past, throughout what is now referred to as “crypto iciness.” That 12 months, the price of bitcoin cratered kind of 80% from the highs in 2017. The most recent fund additionally comes at any other bearish second for bitcoin.

The arena’s authentic cryptocurrency has misplaced kind of part its price for the reason that excessive close to $60,000 in April. This week by myself, it is heading in the right direction for a 20% loss. Haun and Dixon famous the asset magnificence’s volatility, and stated “costs would possibly vary however innovation continues to extend via every cycle.”

“We consider that the following wave of computing innovation will likely be pushed by way of crypto,” the companions wrote, including that they are “radically positive about crypto’s doable.”

The company is understood for early bets on corporations like Facebook, Instagram, Lyft and Pinterest. Andreessen Horowitz made its first transfer into the virtual asset area via Coinbase in 2013. Coinbase went public by the use of a right away record this 12 months, and is down kind of 50% from its record day excessive.

Andreessen Horowitz could also be an early investor in Fb-backed virtual foreign money challenge libra, now referred to as diem, which has long gone via a sequence of rebranding and confronted opposition from world regulators.

The company has stakes in corporations like OpeanSea and Dapper Labs, powering the new NFT growth and stated it plans to concentrate on “decentralized finance.” Sometimes called “defi,” the time period used to explain conventional finance programs, like lending or banking, constructed at the identical era that underlies bitcoin. The company stated it plans to carry those crypto investments for a decade or extra.

Those virtual asset investments are being pushed by way of companions Haun, a former Justice Division prosecutor, and Dixon, who based and ran two start-ups earlier than becoming a member of Andreessen Horowitz. Haun helped launch the Justice Division’s first govt job pressure for crypto and labored at the first high-profile cryptocurrency-related case, Silk Highway.

Andreessen Horowitz additionally introduced a wave of latest hires for the fund, together with former Securities and Trade Director Invoice Hinman, who will sign up for the company as an advisory spouse. Rachael Horwitz, who led communications at Twitter, Google and Fb, joined as an working spouse.

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