A16z, a major VC company for crypto is reportedly increasing its investments in the sector this year. The company is said to be looking for $4.5 billion to invest in different cryptocurrency-related funds. The company has more than twice the amount it invested in cryptocurrency last year.
To Double down on Crypto, A16z
A16z will continue to put funds behind cryptocurrency-related projects this year, according to reports. This VC firm, which invests in technology-related companies with more than $28billion in assets and focuses its investment on them, wants $4.5 billion to invest this year in two crypto-related funds.
People briefed at the exploratory meetings for this fund said that A16z would like to raise $3.5 billion in order to fund a new crypto fund. $1 billion will also be needed to fund another fund for early-stage seed investment in startups.
According to A16z, they are looking to recruit different people to support them in acquiring these funds. April is the target month. It would become one of the largest funds ever raised in cryptocurrency history if the company is able to raise it. A16z invested over $2 billion last year in crypto startups. The company would invest more in this project if it is successful than the $2 billion that they invested last year.
Crypto Investments and Opposition
Last year, A16z was able to make some initial investments in cryptocurrency. Truefi, a cryptocurrency-based lending platform that does not require collateralization was purchased by the company in August. It also invested in Yield Guild Games, a play to earn guild that identifies potential investment opportunities in blockchain gaming.
In October, A16z led the funding round of Alchemy in which one the most prominent web3 infrastructure companies was funded. A16z led the Series C funding round for Mythical Games in November. This is a company that makes blockchain games.
A16z’s interest in metaverse and cryptocurrency-related companies has drawn criticism. Jack Dorsey is the ex-CEO of Twitter. He has called out people who wish to have the latest metaverse view through investments in startups. Elon Musk also critiqued web3, noting that the term was too trendy and unrealistic, but he is excited for what the future holds.
Let us know your thoughts on the new funds that a16z plans to launch in late 2014. Comment below.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.