One of the top performing VC firms of Silicon Valley, Andreessen Horowitz, just announced the launch of a $300 million cryptocurrency fund. Although not to be underestimated, this move comes as no surprise. The company had job postings that hinted at the crypto fund since April 2018.
Details shown in a blog post published last Monday stated that the fund will be called “a16z”. The company also stated that it will be having Katie Haun – former federal prosecutor and Assistant US Attorney – as its first female general partner. Haun has earned a reputation for being the one to spearhead the busting of the infamous Silk Road marketplace as well as BTC-e, the crypto exchange doubling as a criminal hub.
The investment firm has plans to do aggressive, yet methodical expansion. It has been known to invest millions on promising projects and protocols including startups and cryptocurrency exchanges such as Coinbase.
Andreesen Horowitz General Partner Chris Dixon expresses the company’s investment direction through a statement:
"We've been investing in crypto assets for 5+ years," he wrote. "We've never sold any of those investments, and don't plan to any time soon. We structured the a16z crypto fund to be able to hold investments for 10+ years."
A16z has also had experience with seed rounds. A recent round was conducted with Harbor where $28 million was gathered along with funding from other high profile investors from Silicon Valley. Behind these moves are existing, reliable general partners such as Balaju Srinivasan of Earn.com.
The $300 million A16z fund comes in an unusual time when Bitcoin is experiencing all time lows since it had reached $20,000 last year. The company is well aware of this and is simply looking to the longer term which made clear when it stated:
“We have an “all weather” fund. We plan to invest consistently over time, regardless of market conditions. If there is another “crypto winter,” we’ll keep investing aggressively.”
The point is to invest in the underlying technology behind real-life use cases. Whether the projects have already matured or are in the seed stage, the company will be taking an interest and actively invest in those.
When prices are low, the bulk of the market will lose confidence. However, those eyeing buy opportunities will be on their toes. The investment firm moves in a particularly interesting time where Bitcoin is at a low. Experienced investors see a big buy opportunity in times like this.