Andreessen Horowitz plans $1bn cryptocurrency VC fund: Financial Times

After immersing its capital in two fintech companies this week, Andreessen Horowitz is all set to dip its hands into cryptocurrency by raising a capital of $1 billion for the same. This moves comes after the venture capital firm’s successful investment in Coinbase.
Financial Times (FT) reported that this new fund is Andreessen’s third that is focused on cryptocurrency investments. The firm is aiming to raise between $800million and $1billion from investors, as reported. This would make it one of the largest pools of capital for cryptocurrency and potentially twice the size of its predecessor. 

The digital currency exchange Coinbase went public this month and is valued at $60 billion. Andreessen’s fundraising move comes at a time when investors are scrambling to raise capital for a surging market in Bitcoin, Ethereum and altcoins.
In March, investors including Sequoia Capital China committed $225 million to the second cryptocurrency fund raised by Dragonfly Capital, more than doubling the sum Dragonfly raised for its debut version in 2018, reported FT.

Silicon Valley-based Andreessen Horowitz has invested in cryptocurrency groups such as Coinbase and Ripple through its traditional funds. Its stake in Coinbase was worth $11.2 billion at the price of Coinbase’s first trades. The firm has sold close to $120 million in shares since Coinbase went public, according to regulatory filings, as reported by FT.

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