A16z, a venture capital firm with investments in Protocol Labs, Polychain Capital and Opensea, among others, plans to raise $4.5 billion for its new fund, which will focus solely on cryptocurrencies, according to a report by the British newspaper Financial Times.
Last week, Andreessen Horowitz’s venture capital firm reported that it would raise $3.5 billion for its venture capital fund and another $1 billion for seed investments in Web 3.0, with plans to be announced in March. The company will eclipse the $2.2 billion it raised in June 2021, which was the largest in the crypto industry at the time.
The first fund will be used for investing in cryptocurrency companies and projects seeking investment for startups, while the second fund will focus on investing in digital tokens and currencies.
Andreessen Horowitz is one of Silicon Valley’s leading venture capital firms with nearly $30 billion in assets under management. The hedge fund was one of the first big investors in companies like Skype, Facebook, Twitter and Coinbase. If a16z manages to attract investors to raise $4.5 billion, it would become the largest company in the industry, surpassing Paradigm’s $2.5 billion in November 2021.
A16z has backed a number of cryptocurrency-friendly gaming platforms, most recently Carry1st, the company’s first investment in a startup on the African continent. In October 2021, a high-level delegation from the venture capital society met with members of Congress and US government officials to discuss cryptocurrency regulations.