By
Steve Muchoki
April 19th, 2024
Andreessen Horowitz is going to start its second crypto investment fund and wants to garner $450 million in capital.
Andreessen Horowitz, also called the a16z, aims to launch its second wave of crypto funding, by raising $450 million. The fund will be solely dedicated to investing in the cryptocurrency industry.
The a16z is a private American venture capital firm that was founded 11-years ago by Ben Horowitz and Marc Andreessen. Andreessen Horowitz launched its first dedicated crypto fund back in 2018 when it raised $350 million.
The company has been venturing in crypto start-ups and obscure coins apart from the well-established like Bitcoin. Besides, it has also been active in the crypto space, whereby last November it launched a school for training crypto entrepreneurs.
The $450 million funding has coincided with the ongoing coronavirus pandemic, which has increased panic in the crypto community. Most crypto assets led by BTC, ETH and XRP have lost considerable value since the coronavirus was declared a global pandemic.
Huge Bet on Crypto
It is a huge bet to invest in the crypto, however, it is in such times when best opportunities to buy for long term investors emerge. Considering the last financial crisis back in 2008, the aftermath was a huge breakout of the stock market and the global economy at large.
The company is betting that the crypto space remains immature and a lot of opportunities are still up for grabs before the industry grows. However, with the uncertainty of the coronavirus, there are no guarantees that we have experienced the lows in the crypto sphere.
With most developed countries still struggling to control and catch with mass testing, we might be a long way from that. However, the crypto sphere may be in a better position to deal with the coronavirus since it’s not affected by inflation.
With major events like Bitcoin halving next month and also Ethereum 2.0 launch, which are mostly associated with bull rallies, the company may be on the right track.
Andreessen Horowitz Major Past Investments
Since its inception, the company has been investing in tech companies. In less than two years after being formed, the company was managing a total of approximately $1.2 billion. As a result, it earned to be ranked number 10 on the 2011 Forbes Midas List of top investors.
Four years later, the company capital had risen to clinch above $4 billion in assets. The company has been involved in the business management SaaS developer, and also in the Skype stock market. The company also invested in Roblox, just but a few of hundreds of investments that the firm has made in the past 11 years of existence.