big news Tech has a new a16z cryptocurrency-focused fund this morning with a total of $2.2 billion. The new investment vehicle is worth nearly four times the value of the company’s predecessor crypto fund – its second.
Andreessen’s bet on the cryptocurrency is only going to intensify over time as the investment house raises large funds focused on the market with little time between them.
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It’s not hard to see why a16z is so excited about the crypto market; Her investment in trading house Coinbase paid off well this year when Unicorn Direct listed at a sizable valuation premium to its previous value. Why not put more capital into the startup cohort that was extremely lucrative until recently?
But the venture capital conglomerate does little more than just write new checks. We can tell a lot from the short post from the firm announcing its new fund. Mix in a recent interview with a16z co-founder Marc Andreessen regarding the US regulatory environment, and we can understand that the firm isn’t just planning on rolling out a flurry of new deals.
Defending the future of crypto
The headline figure of $2.2 billion in available capital for crypto projects is making headlines this morning, but the dollar figure shouldn’t be a surprise. There is essentially infinite money in the market for name-brand venture capital firms today, it appears, and with a16z’s recent Coinbase win, I suspect compiling a new, bigger crypto-focused vehicle for the firm is monstrous was quite difficult.