Despite the gloomy outlook for the cryptocurrency markets, based on the past few weeks of token turbulence, VCs looking to invest in the future of web3 are not stepping off the gas pedal.
Andreessen Horowitz, who has gone through some changes over the past few years by increasing headcount to scale her trades, has closed her latest crypto fund, a huge amount. The new $4.5 billion fund doubles the size of their previous crypto fund and demonstrates the growing interest of the firm’s partners in increasing their participation in crypto startups. The firm specifies that one-third of the new megafund will be dedicated exclusively to seed deals.
It has been less than a year since the firm announced its $2.2 billion Crypto Fund III, and in that time the firm has gone through as many changes as the broader cryptocurrency market. Recent months have seen a further rise of cryptocurrency firms such as Paradigm and Electric Capital, which have raised megafunds to challenge the dominance of a16z. The firm has also weathered the departure of its crypto co-CEO Cathy Haun, who split from a16z, bringing along several colleagues to launch Haun Capital with $1.5 billion split between the two funds.
Crypto Fund IV is still led by longtime CEO Chris Dixon, who seems to have raised his public persona in recent months, especially on Twitter, where he breathlessly defends the web3 space from its detractors, getting into squabbles with them from time to time. figures like Jack Dorsey from Block. and Aaron Levy from Box. The ongoing skepticism among a host of investors and entrepreneurs has become even louder in recent weeks following the particularly ugly collapse of the Terra ecosystem and its UST stablecoin, which seemingly collapsed overnight, vaporizing tens of billions of dollars, while federal lawmakers renewed calls to speed up the process. . legislation designed to contain the industry.
Asked if the market cooldown will deter traditional firms from continuing their crypto bets, a16z’s Arianna Simpson told TechCrunch that “it’s likely other firms will back off” but that “the size of our new fund speaks to the level of excitement and faith.” we have in this category.”
When a16z announced its latest blockchain fund, the cryptocurrency markets recently crashed, but an impressive comeback is about to take place, pushing Bitcoin and Ethereum cryptocurrencies to new all-time highs. The outlook for crypto investors seems a bit less rosy these days as stocks of public tech companies continue to drop — both Robinhood and Coinbase are down over 75% from their debuts — and observers are predicting turbulent times lie ahead for more than just crypto. but also for technology. the industry as a whole.
Cryptocurrency division Andreessen Horowitz is well positioned to continue scaling operations with a huge supply of fresh capital, but the uncertain times ahead have left many new founders worried about capital availability during another potential “crypto winter.”
“We cannot predict the future state of the market,” Simpson tells TechCrunch. “But we’re working with our companies to make sure they’re capitalized enough to handle the storms.”
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Credit: techcrunch.com /