Andreessen Horowitz to raise $4.5B new investments in crypto: FT

• Andreessen plans to finalize the new funds by March

• The new fundraising exercise will surpass the $2.2 billion it, raised in June 2021 for its Crypto Fund III

Venture capital firm Andreessen Horowitz is looking to raise $4.5 billion for a new set of funds, to invest in cryptocurrency.

The venture capital firm has been in the news for investing heavily in cryptocurrency and businesses related to it. On Wednesday, Financial Times reported that the firm told investors it is looking for $3.5 billion for a crypto venture fund.

In addition to this, the firm also plans to raise $1 billion for a separate fund focused on seed investments in digital asset start-ups. Andreessen plans to finalize the new funds by March.

This new fundraising exercise will surpass the $2.2 billion Andreessen’s cryptocurrency arm, led by Chris Dixon and two other investing partners, raised in June 2021 for its Crypto Fund III, which was the industry's largest at that time. The firm has already invested most of that fund.

Also Read: Andreessen Horowitz plans $1bn cryptocurrency VC fund

The new crypto fund would be the industry's largest, overtaking the $2.5 billion raised by Paradigm in November. It comes just weeks after Katie Haun, an a16z partner, said she was leaving the company to start her venture capital firm.

Haun plans to raise at least $900m for two separate cryptocurrency funds. Andreessen has committed to invest $50m in the funds, 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.

Also Read: VC Andreessen Horowitz raises fintech startups into the $2 billion valuation club

Picture Credits : a16z