Andreessen Horowitz closes $4.5 billion crypto fund amid market turmoil

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Regardless that crypto markets seem like on an extended, arduous path forward based mostly on latest weeks of token turmoil, enterprise buyers seeking to get their palms on a Web3 future aren’t slowing down.

On Wednesday, enterprise capital large, A16Z, announced 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 car will deal with early-stage concepts in addition to tasks which can be 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 recent prospects. Marc Andreessen, the co-founder of A16Z, commented that cryptocurrencies are nonetheless of their “early innings,” including that the market has a variety 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 scale of the earlier crypto fund 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 trade all through latest months, with a number of crypto native companies like Paradigm and Electric Capital raising enormous sums to compete in opposition to it.

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

Previously recognized for investments in Instagram and Slack, the agency first entered the crypto sector with an funding in Coinbase in 2013. It has since backed a variety of crypto companies, together with Polychain Capital, OpenSea, Solana (SOL), Avalanche (AVAX) and Yuga Labs.