A16z, one of the most influential VC firms in the crypto sector, has announced the launch of a new cryptocurrency fund to invest in the development of Web3 startups. This fourth crypto fund from the firm, which will launch with a budget of $4.5 billion, is set to focus on several key areas in the crypto environment, including blockchain games and decentralized finance.
A16z Bets Big on Web3 and Crypto
A16z, one of the most active VC firms in crypto, has revealed that it is launching yet another crypto investment fund. The company’s new effort, which will have $4.5 billion at its disposal, will focus on Web3 investments in companies at any growth rate. According to the company, this is a bet on blockchain as one of the key technologies of the future.
A blog post written by Chris Dixon, a general partner at A16z and the founder and leader of its crypto division, stated:
We feel that we are now entering the golden age of Web3. Programmable blockchains are sufficiently advanced, and a wide variety of apps have reached millions of users. More importantly, a huge wave of world-class talent has entered Web3 in the past year.
With this capital, the fund invested by A16z in the crypto ecosystem has grown to over $7.6 billion.
investment objective
A16z also explained how it is allocating funds. In the blog post, Dixon clarified that $1.5 billion will be invested for companies that are still in their early stages of development, and have to rely on investors for their operations. The other $3 billion will be put on the back of various venture investments not yet specified by the company.
The scope of A16z is large, with the firm stating its investment will cover various sectors of the crypto community, including “web 3 games, DeFi, decentralized social media, self-sovereign identities, layer 1 and layer 2 infrastructure, bridges, DAOs, Governance, NFT community, privacy, creator monetization, regenerative finance, new applications of ZK Proof, decentralized content and story creation.”
The company also announced that it will continue to grow its operations team to better provide support to its portfolio companies, including research and engineering, security, talent and people, legal aid and marketing.
A16z has also been active in other recent investments involving crypto and tokenization. It recently led an investment round in FlowCarbon, a carbon token company backed by WeWork co-founder Adam Newman.
What do you think of A16z’s new $4.5 billion crypto and Web3 fund? Tell us in the comments section below.
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