Andreessen Horowitz Takes Advantage of Market Turmoil, Raises $4.5 Billion Crypto Fund

Venture capital firm Andreessen Horowitz (A16Z) raised a record-breaking $4.5 billion for its fourth cryptocurrency fund. Andreessen’s total raised for crypto and blockchain projects now stands at a whopping $7.6 billion. With this new capital, the company intends to invest in both cryptocurrencies and company equity. According to the firm, $1.5 billion of the funding will be used for seed injections, while $3 billion will be dedicated to venture investments.

The Venture Capital launched its first crypto-focused fund four years ago, during the so-called “crypto winter.”

Andreessen Horowitz and The State of Crypto Market

Following the collapse of the TerraUSD stablecoin and its sister coin LUNA, news of a16z’s latest crypto fund comes at a time when the broader crypto market has entered a major downturn.

Despite the downturn, Ariana Simpson, a partner at A16Z, assured investors that the firm is confident in its bets. She further adds, “Bear markets are often when the best opportunities come about when people are actually able to focus on building technology rather than getting distracted by short-term price activity.” 

At the TechCrunch Disrupt forum in San Francisco, Chris Dixon, General Partner at Andreessen Horowitz, talks about cryptocurrency.

Andreessen Horowitz has previously invested in a number of successful startups. A16Z is most well-known for its early investments in Lyft, Pinterest and Slack. Aside from these more “traditional” digital investments, the firm was an early crypto believer when it made its first major crypto investment with Coinbase in 2013. Since then, Andreessen Horowitz has backed many successful crypto startups : OpenSea, Solana, Yuga Labs, Avalanche, Alchemy, Dapper Labs among others.
Earlier this week, the firm also invested in Flowcarbon, which is a blockchain-based carbon-credit trading platform. In addition, Andreessen Horowitz announced the release of GAMES FUND ONE, which will invest $600 million in the gaming industry.