Andreessen Horowitz Doubles Down on Crypto Investments With New $515M Fund

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Andreessen Horowitz’s (a16z) second crypto fund reveals the enterprise capital agency is concentrating on particular areas to spend money on the cryptocurrency house.

The firm mentioned Thursday it had raised a complete of $515 million – greater than the original $450 million target – for a second fund referred to as “Crypto Fund II,” devoted to cryptocurrency and blockchain tasks. It’s additionally greater than the $300 million raised for the VC’s first crypto fund, which launched again in the summertime of 2018.

In the blog post saying the brand new fund, a16z says it’s trying into tasks touching next-generation funds, decentralized finance (DeFi), new monetization fashions and Web3 (the idea of a decentralized web).

On DeFi, the place complete worth handed the billion-dollar milestone earlier this yr, a16z mentioned it noticed excessive potential within the composability of belongings. “DeFi opens the components of finance to the same recombination and experimentation that makes open-source software so powerful,” it mentioned.

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This marks a distinction to a16z’s first crypto fund. In its initial investment thesis, the VC talked about a handful of what it noticed as attention-grabbing use circumstances, together with stablecoins, monetary inclusion and the tokenization of real-world belongings.

However, it included the caveat that “we are still early in the crypto movement. The infrastructure needs to be improved and the applications are difficult for non-early adopters to use. Many crypto applications still get dismissed as toys.”

Thursday’s weblog submit suggests a16z now considers the trade could have reached vital mass.