andreessen horowitz triples down on blockchain startups with massive $2.2 billion crypto fund iii

Andreessen Horowitz Launches $2.2 Billion Crypto Fund

Despite a recent cooling in the cryptocurrency market following a period of significant growth, Andreessen Horowitz is doubling down on its commitment to blockchain technology. The firm’s crypto division has announced a new $2.2 billion fund dedicated to supporting startups in the crypto space.

Largest Vertical-Specific Fund to Date

This new fund represents the largest vertical-specific investment vehicle ever created by Andreessen Horowitz. It significantly surpasses the size of their previous crypto funds.

The firm’s initial crypto fund, established in 2018, secured $300 million in limited partner (LP) commitments. Their second fund, finalized in April of the previous year, reached $515 million. This latest multibillion-dollar fund demonstrates increasing confidence among institutional investors in cryptocurrencies.

It also highlights the rapid expansion of Andreessen Horowitz’s assets under management, positioning them to compete with other major investment firms like Tiger Global.

Assets Under Management Surge

Currently, Andreessen Horowitz manages a total of $18.8 billion in assets.

Limited partners are now seemingly more willing to invest in crypto, particularly after Andreessen Horowitz’s investment in Coinbase proved highly profitable. The stake was valued at $11.2 billion during Coinbase’s direct listing, although the stock has experienced a 30% decline in recent months alongside the broader crypto market contraction.

Notable Investments

Andreessen Horowitz has made several significant investments in the blockchain ecosystem. These include:

• Dapper Labs, the creator of NBA Top Shot, which achieved a $7.5 billion valuation earlier this year.
• Dfinity, a blockchain infrastructure startup, which raised funds at a $9.5 billion valuation last September.
• Uniswap, a key player in the Ethereum ecosystem, in which a16z led the Series A funding round.

Beyond equity investments, a16z has also directly invested in various cryptocurrencies.

Reports from Newcomer last month indicated that a16z was aiming for a $2 billion crypto fund and had already reduced some of its crypto holdings prior to the recent market downturn.

Fund Management and New Hires

Crypto Fund III will continue to be overseen by General Partners Chris Dixon and Katie Haun. The firm is also expanding its management team dedicated to the crypto vertical.

Anthony Albanese, formerly of the NYSE, has been appointed as the division’s Chief Operating Officer (COO). Tomicah Tillemann, previously a senior advisor to President Joe Biden and chairman of the Global Blockchain Business Council, will serve as a16z Crypto’s global head of Policy.

Rachael Horwitz joins as an operating partner, leading marketing and communications for a16z crypto, transitioning from Google and having previously served as Coinbase’s first VP of Communications.

Advisory Support

Several advisors are also joining the team, including entrepreneur Alex Price. Regulatory expertise will be provided by Bill Hinman, formerly of the SEC, and Brent McIntosh, who recently held the position of Under Secretary of the Treasury for International Affairs.