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Andreessen Horowitz Launches Crypto Fund; Names First Female Partner
Venture Capital, FinTech
After months of rumors, Andreessen Horowitz finally announced the launch of A16z crypto, a $300M venture fund that the venture capital giant will use to invest in crypto companies and protocols.
Chris Dixon, a general partner for A16z who has been at the forefront of Andreessen Horowitz’s efforts in the cryptocurrency, said in a statement announcing the launch that the “fund is designed to include the best features of traditional venture capital, updated to the modern crypto world.”
Here is the strategy Dixon lays out for the fund:
- We are long-term, patient investors. We’ve been investing in crypto assets for 5+ years. We’ve never sold any of those investments, and don’t plan to any time soon. We structured the a16z crypto fund to be able to hold investments for 10+ years.
- We have an “all weather” fund. We plan to invest consistently over time, regardless of market conditions. If there is another “crypto winter,” we’ll keep investing aggressively.
- We provide operational support to entrepreneurs. Our crypto investments have access to the same 80+ person a16z operating teams as do our non-crypto investments. Our operating teams have deep expertise in executive and technical recruiting, regulatory affairs, communications and marketing, and general startup management. We are responsible participants in the governance of companies and the governance of networks.
- We are flexible with respect to stage, asset type, and geography. One reason we created a new fund is to have maximum flexibility. We invest at all stages, from seed stage pre-launch projects to fully developed later-stage networks like Bitcoin and Ethereum. We’ll invest in traditional financial instruments like equity or convertible notes, and new instruments including the direct purchase of coins/tokens. Crypto is a global phenomenon, with great projects all around the world, and we’ll invest accordingly.
- We are focused on non-speculative use case. We want services powered by crypto protocols to be used by hundreds of millions and eventually billions of people. Crypto tokens are the native asset class of digital networks, but their value is driven by the underlying, practical uses cases.
Andreessen Horowitz has been the most prominent venture capital firm to champion the cryptocurrency market, “dabbling” in the space as far back as 2013, according to the New York Times. In fact, co-founder Marc Andreessen penned an op-ed for the Times in 2014 in which he made the case for Bitcoin.
The impending launch of A16z was first reported by Recode back in April.
Meanwhile, in other big news for Andreessen Horowitz, the firm has also appointed Katie Haun its first female general partner. Haun is a former federal prosecutor who led the prosecution of federal agents who stole money from the online black market Silk Road and sits on the board of Coinbase.