Andreessen Horowitz rakes in $2.2bn for third crypto venture fund

Laxman Pai, Opalesque Asia:

Venture capital giant Andreessen Horowitz (a16z) Andreessen Horowitz raised $2.2bn for its third fund focused on digital assets, more than doubling its initial target in a sign of strong demand from institutional investors.<P> The Silicon Valley group, that has backed Facebook and crypto exchange Coinbase, will set up a third fund focused on finding “the next generation of visionary crypto founders”, it said on the website. It will invest in blockchain and cryptocurrency.<P> Andreessen Horowitz was one of the earliest venture capital firms to catch on to the significance of crypto, the technology underpinning Bitcoin. Andreessen Horowitz’s new fund-dubbed Crypto Fund III-ranks among its biggest fundraisings to date. <P> Founded in 2009, Andreessen Horowitz manages nearly $20 billion in total assets. The firm has raised more than $3 billion across its three crypto funds, including a $300 million initial fund in 2018 and a $515 million follow-up last year.<P> The firm’s cryptocurrency arm, dubbed “a16z crypto,” is structured more like a hedge fund than a VC fund. This legal framework enables it to move in and out of positions quicker than a traditional VC firm, which faces lockups before an “exit” like an IPO or sale, might.<P> The crypto division at Andreessen Horowitz is led by Chris Dixon, a longtime partner, and Katie Haun, a former federal prosecutor best known for bringing corrupt federal agents in the Silk Road dark-web marketplace case to justice.<P> “The size of this fund speaks to the size of the opportunity before us: crypto is not only the future of finance but, as with the internet in the early days, is poised to transform all aspects of our lives,” Katie and Chris said in a blog post.<P> Andreessen Horowitz also announced a wave of new hires for the fund, including former Securities and Exchange Director Bill Hinman, who will join the firm as an advisory partner. Rachael Horwitz, who led communications at Twitter, Google, and Facebook, joined as an operating partner.<P> &quot;Our team now includes experts in marketing, public relations, policy, regulatory affairs, recruiting, as well as general startup management. We are promoting Anthony Albanese, who joined us last year from the New York Stock Exchange to Chief Operating Officer to lead operations,&quot; the post said.<P>

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