A16z, a leading VC firm, announced that a new crypto fund will be launched to support the growth of Web3 startups. The firm’s fourth cryptocurrency fund, with a budget in excess of $4.5 million, will focus on key areas within the crypto ecosystem, such as blockchain games, decentralized finance, and other related fields.
A16z Places Large Bets on Web3 And Crypto
One of the largest crypto VC companies, A16z has announced that it will launch a new crypto investment fund. This new venture, with $4.5 billion in its possession, will be focused on Web3 investments into companies growing at any rate. According to the company this is a wager on blockchain technology as the key technology of the future.
Chris Dixon (general partner, A16z founder, and leader of the crypto division) wrote this blog:
The golden era is now, according to Web3. Programable blockchains have advanced sufficiently, and many apps have reached millions. Web3 has seen a huge influx of top-notch talent over the past year.
These funds represent more than 7 billion dollars in capital for A16z, which has also invested heavily in crypto-related projects.
Goals for Investment
A16z provided details on how the money is allocated. Dixon clarifies in the blog that $1.5 billion would be used for seed investments. This is to help companies in the early stages of their growth who rely on investors to support their operations. Other venture investments will not be disclosed by Dixon.
The scope of A16z is large, the firm stating its investments will encompass different areas of the crypto community, including “web3 games, Defi, decentralized social media, self-sovereign identity, layer 1 and layer 2 infrastructure, bridges, DAOs, governance, NFT communities, privacy, creator monetization, regenerative finance, new applications of ZK proofs, decentralized content & story creation.”
Additionally, the company announced that it plans to continue growing its operational support team in order to better assist its portfolio companies. These include research and engineering as well as security and talent management, legal advice, and marketing.
Other recent investments in crypto- and tokenization have also involved A16z. Recently, it led an investment round for Flowcarbon which was backed by Adam Neumann (founder of Wework).
What do you think about A16z’s new $4.5 billion crypto and Web3 fund? Comment below.
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