The large information in tech this morning is a brand new a16z cryptocurrency-focused fund totaling some $2.2 billion. The brand new funding car is value round 4 instances what the corporate’s previous crypto fund — its second — was value.
Andreessen’s wager on cryptocurrency is barely accelerating over time because the investing home raises bigger funds targeted available on the market with much less time between them.
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It’s not laborious to see why a16z is so enthused in regards to the crypto market; its investments into buying and selling home Coinbase paid off handsomely this 12 months when the unicorn direct listed at an enormous valuation premium to its earlier value. Why not put extra capital right into a startup cohort that was just lately immensely profitable?
However the enterprise capital group is as much as a bit extra than simply writing new checks. We will inform that a lot from the agency’s brief submit saying its new fund. Combine in a current interview with a16z co-founder Marc Andreessen in regards to the American regulatory setting, and we will perceive that the agency shouldn’t be merely planning a flurry of latest offers.
Defending the way forward for crypto
The headline determine of $2.2 billion in capital obtainable for crypto tasks is driving headlines this morning, however the greenback determine shouldn’t be a shock. There’s primarily infinite cash available in the market for name-brand enterprise capital corporations at the moment, it seems, and with a16z’s current Coinbase win, I doubt it was monstrously troublesome for the agency to compile a brand new, bigger crypto-focused car.