Despite the bleak outlook for the crypto market based on the token turmoil of the past few weeks, venture capitalists looking for a way towards a web3 future are not left out.
Andreessen Horowitz, which has gone through a bit of a change over the past few years, scaling staff to scale his deals, closed his latest crypto fund and it’s a giant. The new $4.5 billion fund doubles the size of their last crypto fund and demonstrates the growing interest of the company’s limited partners in increasing exposure to cryptoassets. Cryptocurrency startups. The company specifies that a third of the new large funds will be dedicated to seed trades.
It’s been less than a year since the company announced the $2.2 billion Crypto Fund III, and the company has endured as many changes as the broader crypto market in that time. Recent months have seen an even stronger rise in crypto firms like Paradigm and Electric Capital, which have raised huge amounts of money to challenge a16z dominance. The company also endured the departure of crypto co-lead Katie Haun, who spun off a16z along with several of her peers to launch Haun Capital with $1.5 billion spread across two fund.
Crypto Fund IV continues to be run by longtime GP Chris Dixon, who seems to have backed his public persona in recent months, particularly on Twitter, where he defends the web3 space from slander. its detractors, occasionally encountering characters like Block’s Jack Dorsey and Box’s Aaron Levie. The continued skepticism of many investors and entrepreneurs has grown even stronger in recent weeks following the particularly ugly collapse of the Terra ecosystem and its stablecoin UST that exploded seemingly overnight, evaporating tens of billions of dollars in value while new federal lawmakers call for fast-track legislation aimed at improving the industry.
When asked if the cooling of the market is stopping traditional companies from staking their crypto, a16z’s Arianna Simpson told TechCrunch that “there is a possibility that other companies will back out.” , but “the size of our new fund speaks volumes about the level of excitement and confidence we have in this portfolio. “
When a16z announced its last blockchain fund, the crypto market had recently crashed but will soon make an impressive comeback, propelling cryptocurrencies Bitcoin and Ethereum to all-time highs. The outlook among crypto investors is looking a bit less optimistic these days as mass tech stocks continue to suffer – Robinhood and Coinbase are both down more than 75% from their debuts – and followers forecast that turbulent times are ahead, not only for crypto, but for industry technology in general.
Andreessen Horowitz’s crypto arm is well-positioned with a huge pool of new capital to sustain its scaling operations, but uncertain times ahead have left many new founders concerned about the availability of new funds. have capital in another potential “crypto winter”.
“We cannot predict the future state of the market,” Simpson told TechCrunch. “But we work with our companies to make sure they’re well-capitalized to weather the storms.”