Report: A16z to Raise $4.5 Billion for Crypto Investments

Report: A16z to Raise $4.5 Billion for Crypto Investments


A16z, a number one VC firm in crypto, is reportedly ramping up its investments within the area this 12 months. The firm is claimed to be searching for $4.5 billion to spend money on totally different cryptocurrency-related funds. This quantity greater than doubles all the quantity the corporate invested in crypto final 12 months.

A16z to Double Down on Crypto

A16z will proceed to place funds behind cryptocurrency-related initiatives this 12 months, in response to experiences. The VC firm, which focuses its investments on tech-related corporations and has greater than $28 billion in property, is seeking $4.5 billion {dollars} to spend money on two totally different crypto-related funds this 12 months.

According to folks briefed within the exploratory conferences to finish this fund, A16z shall be searching for $3.5 billion to spend money on a brand new cryptocurrency fund and $1 billion to energy one other fund directed for seed investments in early-stage startups.

The firm is reportedly scouting totally different members for help to amass these funds, and A16z is claimed to be aiming for April because the month to succeed in the aim. If the corporate actually manages to boost the cash, it might be one of many largest funds within the historical past of the cryptocurrency scene. Last 12 months, A16z invested greater than $2 billion in crypto startups. This initiative, if accomplished, can be greater than double the quantity that the corporate invested final 12 months.

Crypto Investments and Opposition

A16z has managed to get in some early investments within the cryptocurrency sphere final 12 months. In August, the corporate invested in an uncollateralized cryptocurrency-based lending platform known as Truefi. That identical month, it additionally invested in a play-to-earn guild known as Yield Guild video games, which identifies funding alternatives in blockchain video games.

Later, in October, the corporate led a funding spherical for Alchemy, one of many main web3 infrastructure suppliers. And in November, A16z additionally led the Series C funding spherical of Mythical Games, a blockchain gaming firm.

The curiosity of A16z and different corporations in crypto, metaverse, and web3-related initiatives has made them a goal of criticism in latest occasions. Jack Dorsey, the previous CEO of Twitter, has called out those that wish to personal the present tackle the metaverse by way of their investments in startups. Elon Musk additionally criticized the state of web3, stating that it appeared extra a buzzword than a actuality, however that he was enthusiastic about what this motion would possibly deliver sooner or later.

What do you consider the brand new funds a16z is aiming to launch later this 12 months? Tell us within the feedback part beneath.

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