A16z, a number one VC firm in crypto, is reportedly ramping up its investments in the sphere this 12 months. The corporate is claimed to be on the lookout for $4.5 billion to take a position in completely different cryptocurrency-related funds. This quantity greater than doubles your complete 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 accordance with experiences. The VC firm, which focuses its investments on tech-related firms and has greater than $28 billion in property, is searching for $4.5 billion {dollars} to take a position in two completely different crypto-related funds this 12 months.Based on individuals briefed in the exploratory conferences to finish this fund, A16z shall be searching for $3.5 billion to take a position in a brand new cryptocurrency fund and $1 billion to energy one other fund directed for seed investments in early-stage startups.
The corporate is reportedly scouting completely different members for assist to amass these funds, and A16z is claimed to be aiming for April because the month to succeed in the objective. If the corporate actually manages to lift the cash, it will be one of many largest funds in the historical past of the cryptocurrency scene. Final 12 months, A16z invested greater than $2 billion in crypto startups. This initiative, if accomplished, could 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 in the cryptocurrency sphere final 12 months. In August, the corporate invested in an uncollateralized cryptocurrency-based lending platform known as Truefi. That very same 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 Sequence C funding spherical of Legendary Video games, a blockchain gaming firm.
The curiosity of A16z and different firms in crypto, metaverse, and web3-related initiatives has made them a goal of criticism in current occasions. Jack Dorsey, the previous CEO of Twitter, has known as out those that need to personal the present tackle the metaverse by means 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 convey in the longer term.
What do you concentrate on the brand new funds a16z is aiming to launch later this 12 months? Inform us in the feedback part beneath.
Sergio Goschenko
Sergio is a cryptocurrency journalist based mostly in Venezuela. He describes himself as late to the sport, getting into the cryptosphere when the value rise occurred throughout December 2017. Having a pc engineering background, residing in Venezuela, and being impacted by the cryptocurrency increase at a social stage, he provides a unique perspective about crypto success and the way it helps the unbanked and underserved.
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