Andreessen Horowitz wants $1B for its third crypto fund

Andreessen Horowitz just announced a new crypto fund, which would make three for the VC giant.

Silicon Valley venture capital firm Andreessen Horowitz (a16z) aims to raise between $800 million and $1 billion for its latest crypto fund, Financial Times (FT) reported.

If it succeeds, a16z’ new fund would be twice the size of its predecessor. It would also likely be one of the largest capital pools dedicated to crypto, noted an FT source.

Andreessen Horowitz’ fundraising comes after a slew of other crypto investors have reportedly raised “large war chests.” Overall, a16z manages about $16.6 billion.

a16z launched its first crypto fund in 2018. It was worth $300 million.
Its investments included Arweave, Celo, and CryptoKitties creator Dapper Labs.
Crypto Fund II raised $515 million in 2020. Andreessen Horowitz later contributed to Reflexer Labs and Eco.

Growing valuations for Bitcoin, Ethereum, and other cryptos have driven venture capitalists to invest in the space, according to FT.

In fact, Bloomberg reported last week that crypto and blockchain startups raised $2.6 billion last quarter. That’s more than all of 2020 and in less than half the deals.

The outlet highlighted standout funding rounds for BlockFi, Dapper Labs, and Blockchain.com. It remains to be seen whether the venture capital frenzy continues throughout the year.

Messari Screeners track over 35 of the largest crypto-focused venture and hedge funds including Coinbase Ventures, Pantera, Polychain, a16z, and more.

Of these funds, we’ve analyzed their public holdings and found the most commonly held assets across all the portfolios.

👇🏻👇🏻👇🏻 pic.twitter.com/IBKMoGQNcZ
— Mason Nystrom (@masonnystrom) April 27, 2021

Messari recently shared the most common crypto assets held by venture funds.

In any case, Andreessen Horowitz’ fresh crypto fund comes just weeks after it sold around $120 million of its $11 billion stake in US exchange Coinbase.