Andreessen Horowitz to Create a $4.5 Billion Cryptocurrency Fund

Venture capital firm Andreessen Horowitz (a16z) has raised $4.5 billion for its new cryptocurrency fund. It will be the company’s fourth and largest crypto fund.

Andreessen Horowitz reported about the launch of Crypto Fund 4, which is twice the volume of the previous fund a16z, launched in June last year. Thus, the company is trying to demonstrate that, despite all the turmoil in the cryptocurrency market, investors are still interested in investing in promising Web3 startups.

“We think this is the golden age of Web3. Programmable blockchains are quite advanced, and tens of millions of people around the world use cryptocurrency applications. More importantly, a huge wave of world-class talent has come to Web3 over the past year. They are brilliant, they have enthusiasm and passion, and they want to make the Internet a better place,” said a16z partner Chris Dixon.

The company plans to allocate $1.5 billion to invest in startups, and the rest of the funds will go to venture investments. According to Dixon, a16z is particularly celebrating recent advances in sectors such as Web3 games, decentralized social networks, DeFi, DAO, Tier 1 and Tier 2 infrastructure, NFTs, and many other fast-growing industries.

Another partner of the company, Ariana Simpson, said that despite the high rate of investment, Andreessen Horowitz selects only the most promising projects that have stood the test of time and proven themselves with innovative products. The company’s investment portfolio includes such projects as OpenSea, Avalanche, Alchemy, Solana, Phantom Wallet, Celo and Dapper Labs.

Earlier, Andreessen Horowitz launched the a16z Crypto Research Lab, which will conduct research in the field of digital currencies and Web3.