Andreessen Horowitz has plans to raise $4.5bn for two new crypto funds amid booming VC investment in digital assets.
Andreessen Horowitz’s venture capital firm last week revealed plans to investors to raise up to $3.5bn for its latest cryptocurrency venture fund and up to $1bn for a separate fund focused on seed investments in digital asset start-ups, the FT first reported. According to people familiar with the matter Horowitz plans to finalise the funds by March.
The move comes as top VC firms and crypto companies funnel investment into the digital assets space despite the current bear market.
Investment into Web 3.0 startups exploded to $33bn in 2021, more than all previous years combined, according to a recent report from Galaxy Digital and the momentum shows no signs of stopping in 2022.
Investment into crypto start ups exploded in 2021 to $31.6bn, an almost sevenfold increase compared to the previous year, according to PitchBook data.
The momentum shows no sign of stopping in 2022.
Earlier this week Crypto.com told TechCrunch that it would increase the size of its venture capital arm from $200m to $500m. Just last week, crypto exchange FTX opened a $2bn venture capital arm to invest in crypto projects joining rival trading platforms Coinbase and Binance which already offer funding to start ups.
Andreessen Horowitz is considered one of the leading VC firms in Silicon Valley, having previously been an early investor in Facebook, Twitter, Airbnb, Stripe, Coinbase. If successful it is thought the capital raise would create the largest crypto VC fund in existence.