Iconic American venture firm Andreessen Horowitz has launched a $300 million venture capital fund focused exclusively on cryptocurrency-related projects.
Chris Dixon, an Andreessen Horowitz general partner, introduced a16z crypto, the official name of the firm’s new crypto VC, in a blog post published on June 25. According to the post, a16z crypto “will invest in crypto companies and protocols” using the “best features of traditional venture capital, updated to the modern crypto world.”
Notably, Dixon revealed that the fund would take a “long term, patient” approach to investing in crypto projects “regardless of market conditions.” The fund has been structured “to be able to hold investments for 10+ years,” even if there is another “crypto winter.”
Opting for “maximum flexibility,” a16z crypto plans to invest in companies “at all stages, from seed stage pre-launch projects to fully developed later-stage networks like Bitcoin and Ethereum.” However, Dixon revealed that the new fund will only be interested in “non-speculative use cases” that will have the potential to serve “hundreds of millions and eventually billions of people.”
Andreessen Horowitz has been investing in cryptocurrency projects for at least 5 years, and has participated in funding rounds for Coinbase, Tether, and Basis.