This new venture will concentrate on projects in the early stages, and projects that are mature and have already demonstrated some progress.
Although crypto markets appear to be on a hard and arduous road ahead, as evidenced by recent events of turmoil in the token market Venture investors hoping to secure the Web3 time-line aren’t slowing.
On Wednesday, the venture capitalist, Andreessen Horowitz announced the closure of their fourth crypto fund, which was valued at $4.5 billion. The total amount invested by Andreessen Horowitz in the business of blockchain and digital currency to over $7.6 billion.
It will be focusing on ideas in the early stages as well as those which are more advanced and have already gained some momentum. According to the company, $1.5 billion of the money will be used for seed injections. The remaining $3 billion will be devoted to venture investment.
Despite the current state of the market the company is optimistic about the possibility of finding new prospects. Marc Andreessen, the co-founder of a16z, stated that cryptocurrency is still within the “early innings,” adding that the market holds lots of potential for growth.
This fourth fund for crypto has been in in the works for a while. Cointelegraph first covered the fund in January. It is doubling its size over the prior crypto fund and highlights the increasing interest of the limited partners of the firm in increasing their exposure to cryptocurrency-related companies.
The latest funding comes less than a year ago since Andreessen Horowitz announced that it would launch of their $2.2 billion Crypto Fund III. The A16z dominance has created waves in the cryptocurrency industry in these past months, with crypts-based companies such as Paradigm as well as Electric Capital raising enormous sums to fight it.
Previously known for its the investments it made previously involved in Instagram and Slack The company first moved into the cryptocurrency market through its investment into Coinbase back in the year 2013. Since then, it has backed several crypto-related businesses that include Polychain Capital, OpenSea, Solana (SOL), Avalanche (AVAX) and Yuga Labs.