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- Andreessen Horowitz wants to raise between $800 million – $1 billion for the fund, its third and largest crypto-focused fund.
- The firm has invested in Aleo, a zero-knowledge private applications platform.
- The venture capitalist had earlier found success by investing in Coinbase and Ripple through its traditional funds.
According to the Financial Times report, venture capitalist firm Andreessen Horowitz is looking forward to investing a whopping $1 billion in cryptocurrencies and crypto start-ups.
It wants to raise between $800 million – $1 billion for the fund, which will be its third and largest crypto-focused fund; recently, the firm had invested in Aleo, a zero-knowledge private applications platform.
Chris Dixon and Katie Haun, the partners leading the fund, wrote in a blog that crypto has gone through several waves in just a decade of existence. They elaborated that with each wave, crypto applications extend to a greater number of categories and more visionary entrepreneurs enter the space.
Five areas in which they may invest
The partners have listed five areas in which they may invest in:
- Next-generation payments – it possesses the actual value without third-party dependencies once you click send. Payment blockchains are picking up where bitcoin is left off, that is, solving currency volatility and settlement transaction times.
- Decentralized Finance – DeFi is the new stack of financial services from lending to insurance to trading and crowdfunding.
- Modern store of value – cryptocurrencies, such as bitcoin, is gaining acceptance and adoption worldwide with the likes of Tesla’s Elon Musk investing in buying millions worth of bitcoin and accepting payments for Tesla cars in bitcoin.
- Web 3 – experts believe high-performance programmable blockchains will make decentralized network development much more accessible.
- New ways for creators to monetize – Dixion and Huan think the next wave of internet business models will come from crypto, with creators using token models that bypass gatekeepers and give their fans a direct stake in their success.
Highest-funded investment pools
If Andreessen Horowitz goes ahead with setting up this fund, it will be one of the highest-funded investment pools dedicated to crypto. The firm had earlier found success by investing in Coinbase and Ripple through its traditional funds. In 2018, it had created a dedicated crypto fund, and by 2019, the firm had amassed a portfolio of crypto firms that would become some of the highest-valued companies in the space.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
