Venture capital firm Andreessen Horowitz (a16z) is gearing up for something important in the crypto world. He has reported that he closed his second cryptocurrency fund with $ 515 million in capital commitment.
The recent news seems to indicate that venture capital company Andreessen Horowitz is among the biggest believers in the cryptocurrency world.
Andreessen Horowitz invests in the world of cryptocurrencies
The firm was founded in 2009 by Marc Andreessen and Ben Horowitz. It was created with the aim of supporting bold entrepreneurs who build the future through technology, says its home page.
Now, two years after the company managed to raise $ 300 million for its first fund dedicated to Bitcoin and other cryptocurrency projects, the firm has managed to raise a second fund with a fairly similar history.
The firm said Thursday that it had raised a total of $ 515 million, more than the initial target set at $ 450 million, for its second fund called “Crypto Fund II.” Without a doubt, mark an unprecedented event by exceeding the amount raised in the 2018 fund.
In the announcement, Chris Dixon, co-leader of the fund, noted that he hopes to see the launch of numerous new Blockchain companies. Will this be what the cryptocurrency world needs?
What is the difference between the funds?
In the firm’s publication, a16z noted that it was investigating projects specifically related to next-generation payments, decentralized finance (DeFi), new monetization models, and Web3.
In particular, DeFi has a high potential in the composibility of assets. In this way, he notes that these are some of the areas where people have already been building, yet it only scratches the surface of possible applications.
However, this marks an important contrast to the first cryptocurrency fund. In its initial investment thesis, the VC mentioned numerous interesting use cases. Some of them were stablecoins, financial inclusion, and real-world asset tokenization.
Now, a warning is included noting that “We are still at the beginning of the crypto movement”. It also emphasizes the need for infrastructure to be improved since applications are still difficult to use.
In this way, this new fund tells us something very interesting. And it shows that some investors are still willing to support Blockchain projects. Even after the recent volatility in cryptocurrency prices and the uncertainty caused by COVID-19.