Silicon Valley venture capital firm Andreessen Horowitz has launched the third and biggest multi-billion dollar cryptocurrency-focused fund to continue to invest in the market.
Founded by Marc Andreessen and Ben Horowitz, the firm announced its new $2.2 billion fund on Thursday. It plans to deploy capital across blockchain, digital assets, next-generation payments, decentralized finance (DeFi), Web 3, and more. Katie Haun and Chris Dixon, partners who run Andreessen’s cryptocurrency group said,
“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.”
The company launched its first crypto-focused fund three years ago during crypto winter. Currently, Bitcoin has halved from its all-time high, and altcoins have lost even more of their value.
But as Haun and Dixon noted, “prices may fluctuate but innovation continues to increase through each cycle.”
“We believe that the next wave of computing innovation will be driven by crypto,” they wrote, adding that they’re “radically optimistic about crypto’s potential.”
The firm is known for its early bets on companies like Facebook, Instagram, Pinterest, and Lyft. It made the first move into the crypto asset space in 2013 through Coinbase, which went public this year. Additionally, it is now an early investor in Facebook-backed stablecoin Diem, previously known as Libra. The firm has also joined the NFT boom by investing in Dapper Labs and OpenSea.
Andreessen Horowitz said it plans to hold these crypto investments for a decade or more.
The firm also announced new hires for the fund, including former SEC director Bill Hinman as an advisory partner and former undersecretary of the Treasury for International Affairs Brent McIntosh as an advisor.
For the global head of policy, Tomicah Tillemann, the former chair of the Global Blockchain Business Council and an adviser to the White House, has been appointed. Anthony Albanese, who left the New York Stock Exchange last year, will serve as the new COO, while Rachael Horwitz, who led communications at Twitter, Facebook, and Google, is joining as an operating partner.