Venture capital firm Andreessen Horowitz (a16z) is preparing to raise $1 billion for its new cryptocurrency fund, according to a report from the Financial Times. This will make the firm its third and largest crypto-focused fund.
Andreessen Horowitz to Raise $1 Billion Crypto Fund
Venture capital giant Andreessen Horowitz (a16z) is looking to raise a cryptocurrency fund between $800 million and $1 billion. The firm is planning to raise the new fund toward projects and digital assets in the crypto industry.
If a16z successfully raises the $1 billion, this would make it to be one of the highest-funded crypto investment pools. Previously, Paradigm had raised $1 billion for crypto-focused investments.
Back in April, the firm had raised $515 million for its second cryptocurrency fund, while its first crypto fund brought around $300 million in 2018 from investors.
At the top end of its fundraising range, Andreessen Horowitz’s third cryptocurrency fund would be nearly double the size of its last fund, which raised $515 million a year ago.
The firm owns a whopping $11 billion stake in leading cryptocurrency exchange Coinbase and one of an early investor in blockchain company Ripple Labs, in addition to other early investments in successful tech companies such as Skype, Facebook, Twitter, and Airbnb.
Andreessen Horowitz’s stake in Coinbase has been one of its largest successes. The firm has sold close to $120 million in shares since Coinbase went public, according to regulatory filings.
Firm Managed $35B in Regulatory Assets Last Year
After raising its first crypto fund dedicated back in 2018, Andreessen Horowitz further invested as a major investor in decentralized finance projects and was one of the founding members of the Facebook-backed Libra project, now known as Diem.
In 2019, the firm converted to a registered investment adviser that gave more flexibility to invest in cryptocurrencies and other assets wherein venture funds are usually restricted from holding in large quantities.
By the end of last year, Andreessen Horowitz reportedly managed $35 billion in regulatory assets.