Andreessen Horowitz Launches Largest Crypto Fund Ever With $4.5B
The mammoth fund plans to deploy capital into crypto startups and other venture investments
A16Z’S CHRIS DIXON | Source: MIKE LAWRENCE
key takeaways
- a16z has earmarked $1.5B for seed investments in Web3 startups
- It’s time for the “golden era” of Web3, the firm said
Venture capital behemoth Andreessen Horowitz (a16z) has raised the largest-ever crypto venture fund: $4.5 billion.
The vehicle, the firm’s fourth, brings a16z’s total crypto and Web3 holdings to $7.6 billion.
The launch makes good on a plan unveiled in January, when the company published a now-updated investment thesis predicated on the “power of software” as “the encoding of human thought, and as such has an almost unbounded design space.”
“We think we are now entering the golden era of Web3,” general partner Chris Dixon said in a blog post announcing the new fund. “Programmable blockchains are sufficiently advanced, and a diverse range of apps have reached tens of millions of users. More importantly, a massive wave of world-class talent has entered [Web3] over the last year.”
Talent flocks to the industry during a bull market, Dixon told the audience at last week’s Permissionless conference in Palm Beach, adding that a bear market is the prime time for builders to focus on what comes next.
The fund will invest in Web3 startups that run the gamut from DeFi, to gaming, infrastructure, DAOs, NFTs, privacy, decentralized social media “and many other areas.”
The firm also plans to expand its in-house staff to meet the vetting needs of additional startup investments.
The crypto portfolio of a16z consists of several dozen companies, including big names like Dapper Labs, dYdX, OpenSea, Near, Solana, Phantom and Uniswap. The most recent addition is Flowcarbon, which is building an on-chain carbon credit tokenization platform.
“Our frequent conversations with builders have given us the confidence to go big, and we’re grateful to be your partner,” Dixon wrote of the latest fund.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
- Empire: Start your morning with the top news and analysis to inform your day in crypto.
- Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
- 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
- Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
- The Drop: For crypto collectors and traders, covering apps, games, memes and more.
