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The company has over $28 billion in assets under management (AUM) as of April 2022 and invested in dozens of popular Web3 projects.
Andreessen Horowitz, an investment adviser registered with the Securities and Exchange Commission (SEC), also called AH Capital Management or a16z, remains steadfast on the cryptocurrency and Web3 market despite the sustained bear market. The company’s crypto fund, launched in 2018, has lost approximately 40 percent of its value in the first half of 2022. Nonetheless, Andreessen Horowitz’s investors are bullish on the crypto market in the long term horizon.
“What I look at is not prices. I look at the entrepreneur and developer activity. That’s the core metric,” Chris Dixon, a general partner at a16z and a chief decision maker on crypto investments, told WSJ.
The company has over $28 billion in assets under management (AUM) as of April 2022 and invested in dozens of popular Web3 projects.The company has over $28 billion in assets under management (AUM) as of April 2022 and invested in dozens of popular Web3 projects.
Andreessen Horowitz and the Web3 Industry
Andreessen Horowitz has a strong portfolio in the Web3 industry, including Coinbase Global Inc (NASDAQ: COIN), OpenSea, Ripple, CryptoKitties, Dfinity, and Yuga Labs, among others. Otherwise, the company is also heavily invested in the mobile sector, gaming industry, e-commerce, education, and enterprise IT (including cloud computing, security, and software as a service).
While the cryptocurrency market is down over $2 trillion since hitting ATH last year, the company is still making notable investments to date. On October 3, 2022, the company provided $40 million in funding to Golden’s decentralized knowledge protocol. Whereby the company’s general partner Ali Yahya, and co-founder Marc Andreessen joined Golden’s board of directors.
The Web3 industry has attracted most traditional financial investment firms globally. Moreover, the cryptocurrency market has shown tremendous potential to disrupt the traditional finance sector.
Publicly traded companies like Block Inc, Coinbase, MicroStrategy Inc (NASDAQ: MSTR), and Tesla Inc (NASDAQ: TSLA) have all added crypto assets to their balance sheet.
As such, global hedge funds are keen to channel a portion of their assets into cryptocurrency or blockchain technology. Reportedly, the blockchain industry saw $1.36 billion of venture capital invested in August 2022. However, the figures are the lowest in the past 12 months of cash inflows toward the blockchain industry.
Nevertheless, the Web3 industry is still very young and prone to hacks and system attacks. Consequently, global regulators have stepped in to implement measures to curb rug pulls and Web3 attacks.
The cryptocurrency industry has a total market capitalization of approximately $1 trillion according to data tracked by Coingecko and Coinmarketcap. Bitcoin and Ethereum price are up approximately 8% and 20 percent respectively in the past seven days.
Dogecoin has led in the past 24-hour rally with approximately 17 percent gain, which has been attributed to Elon Musk’s acquisition of Twitter.