Private venture capital firm Andreessen Horowitz may have plans for another crypto asset fund.
The VC is well known for backing social media companies such as Facebook and Twitter, and was one of the first venture firms with a large fund dedicated to cryptocurrencies, raising $350m in 2018 for start-ups working on the blockchain technology underpinning digital coins.
Going for a Long-haul
Andreessen said it designed the first fund to be able to hold investments for more than 10 years, longer than the typical venture fund, and directly purchase digital coins and tokens.
The Silicon Valley-based investor gained traction in cryptocurrencies with an early investment in Coinbase. Today, the firm looks to start its second crypto investment fund, hoping to garner $450 million in capital according to reports.
The firm took the leap and is registered as a financial adviser last year. Though this subjects its partners to greater regulatory scrutiny, but allowing it to invest in cryptocurrencies and tokens with fewer constraints, and opening up to greater possibilities in the crypto arena.
Andreessen Horowitz may release further details over the next week or so as the new reported fund is not finalised at the moment.
A part of Facebook’s Libra Association, the firm is also reportedly involved in that project’s funding.
VC Deals in Crypto Over Time
2019 only saw 15 fewer deals than 2018 for a total of 807 deals, the deal volume dropped by 34 percent, from around $4.2 billion to nearly $2.8 billion.
Over the past four years, VC deals have also been shifting from the U.S. to China. From 2015 to 2019, VC deals in the space dropped by 20 percentage points in the U.S. and rose by 20 percentage points in China.
Back in December, a16z announced its free crypto startup school, shining a light on the industry.