Key Takeaways
- • Andreessen Horowitz (a16z) announced the close of Crypto Fund III, a $2.2 billion venture fund that the firm says is the largest crypto fund ever raised.
- • The fund will be co-led by Chris Dixon and Katie Haun, and will invest across all stages, from seed-stage projects to later-stage networks.
- • Per The Block, demand came mostly from limited partners in a16z's previous crypto funds, which have seen large returns, including more than $440 million netted from selling Coinbase stock after its Nasdaq debut (according to CoinDesk).
- • a16z is building out its crypto business with senior hires, including Anthony Albanese's promotion to chief operating officer, Bill Hinman, and Tomicah Tilleman as global head of policy.
- • The raise follows a wave of crypto venture activity, with investors putting more than $8.8 billion into crypto startups in 2021 so far, versus $3.07 billion in all of 2020, per The Block data.
Summary
Andreessen Horowitz, the venture firm led by Marc Andreessen and Ben Horowitz, announced on Thursday the close of its third crypto venture fund, Crypto Fund III, with $2.2 billion in commitments. The firm describes it as the largest crypto fund raised to date. In a press release, the firm called the fund "a validating moment for the ecosystem" and a sign that crypto is becoming more integrated into financial infrastructure. Chris Dixon and Katie Haun will co-lead the fund.
The close had been anticipated. The Financial Times reported in April that a16z was raising $1 billion for a crypto fund, and Eric Newcomer wrote in late May that the firm was raising $2 billion. A source familiar with the raise told The Block that interest came largely from limited partners in the firm's earlier crypto funds, which have performed strongly. According to CoinDesk, a16z netted more than $440 million from selling Coinbase stock shortly after the exchange's direct listing on Nasdaq.
In a blog post, Dixon and Haun said the fund will look for the next generation of crypto founders and invest across stages and sectors. a16z's crypto mandate has been broad, spanning decentralized finance (DeFi), bitcoin applications, and Web3. Its portfolio includes Dapper Labs, Celo, Uniswap, and Near.
The firm is also expanding its crypto team. Anthony Albanese, who joined last year from the New York Stock Exchange, is being promoted to chief operating officer of a16z crypto. Other hires include Bill Hinman, a former SEC director who once said ether is not a security; Rachael Horowitz, previously the top communicator at Coinbase; and Tomicah Tilleman, a former senior adviser to President Joe Biden, who joins as global head of policy. Dixon and Haun said the firm is recruiting to help explain crypto to mainstream audiences.
The raise comes amid a broader surge in crypto venture funding despite a slump in coin prices. Framework Ventures recently announced a $100 million DeFi fund, and Blockchain Capital announced a $300 million fund backed by PayPal and Visa. Per The Block, investors put more than $8.8 billion into startups in 2021, compared with $3.07 billion in all of 2020.
The close had been anticipated. The Financial Times reported in April that a16z was raising $1 billion for a crypto fund, and Eric Newcomer wrote in late May that the firm was raising $2 billion. A source familiar with the raise told The Block that interest came largely from limited partners in the firm's earlier crypto funds, which have performed strongly. According to CoinDesk, a16z netted more than $440 million from selling Coinbase stock shortly after the exchange's direct listing on Nasdaq.
In a blog post, Dixon and Haun said the fund will look for the next generation of crypto founders and invest across stages and sectors. a16z's crypto mandate has been broad, spanning decentralized finance (DeFi), bitcoin applications, and Web3. Its portfolio includes Dapper Labs, Celo, Uniswap, and Near.
The firm is also expanding its crypto team. Anthony Albanese, who joined last year from the New York Stock Exchange, is being promoted to chief operating officer of a16z crypto. Other hires include Bill Hinman, a former SEC director who once said ether is not a security; Rachael Horowitz, previously the top communicator at Coinbase; and Tomicah Tilleman, a former senior adviser to President Joe Biden, who joins as global head of policy. Dixon and Haun said the firm is recruiting to help explain crypto to mainstream audiences.
The raise comes amid a broader surge in crypto venture funding despite a slump in coin prices. Framework Ventures recently announced a $100 million DeFi fund, and Blockchain Capital announced a $300 million fund backed by PayPal and Visa. Per The Block, investors put more than $8.8 billion into startups in 2021, compared with $3.07 billion in all of 2020.
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