New funds are pouring in! Prominent venture capital firm a16z plans to raise its third $1 billion cryptocurrency fund.

The renowned venture capital firm Andreessen Horowitz (a16z) plans to establish a third $1 billion fund dedicated to the cryptocurrency ecosystem.

$1 Billion Cryptocurrency Fund

According to sources cited by the Financial Times, the institution aims to raise $800 million to $1 billion for a new fund to invest in cryptocurrencies and startups within the industry.

Andreessen Horowitz plans $1bn cryptocurrency VC fund https://t.co/f7u7RdIMtO

— Financial Times (@FT) April 30, 2021

If the target amount is reached, a16z's third cryptocurrency investment fund could be nearly twice the size of the $515 million Crypto Fund II launched by the institution last year. At the same time, if the fund successfully raises $1 billion, it will rank as one of the largest cryptocurrency venture capital funds in the market alongside investment firm Paradigm's private fund.

Investing in Cryptocurrency for 8 Years

a16z began investing in cryptocurrencies as early as 2013 and launched its first $300 million cryptocurrency fund in 2018, specifically for cryptocurrency-related venture capital. Subsequently, the company announced the establishment of a second $515 million fund centered around cryptocurrencies on April 30, 2020. Unlike the first fund, the second fund's establishment not only involves equity investments in crypto startups but also converts a portion of the capital directly into digital assets.

In itspublished cryptocurrency investment thesis, a16z stated:

"We have 'all-weather' funds and plan to make consistent investments over time regardless of market changes. The history of cryptocurrencies shows that while asset prices may fluctuate, innovation will continue to increase during these cycles."

a16z Portfolio

a16z is a prominent institution in the cryptocurrency industry with many successful large-scale projects in its portfolio, such as Ava Labs, Dfinity, Diem (formerly Libra), Filecoin, MakerDAO, Near Protocol, and Uniswap, among others.

One of its most successful investments is the cryptocurrency exchange Coinbase, which went public on the Nasdaq stock exchange in April this year. On the day of listing, the company's stock was valued at up to $86 billion, and a16z's stake in Coinbase was valued at $11.2 billion. According to data from Open Insider,a16z has sold over $120 million worth of shares since Coinbase went public.