Largest Ever! Prominent venture capital firm a16z launches $2.2 billion cryptocurrency venture fund

According to a press release from the prominent venture capital fund Andreessen Horowitz (a16z), the company's third cryptocurrency fund (Crypto Fund III) has completed its fundraising stage yesterday, making it the largest fund of its kind in history, with a size of approximately $2.2 billion.

$2.2 Billion Cryptocurrency Fund

The company stated in a press release:

"The largest cryptocurrency fund raised to date, 'Crypto Fund III,' signifies the maturation of the ecosystem and is another milestone in the advancement of cryptocurrencies toward mainstream financial infrastructure."

In fact, rumors about a16z organizing a large cryptocurrency fund have been circulating among major media outlets in recent months. According to reports in April, the UK's Financial Times cited sources saying that the institution aimed to raise $800 million to $1 billion for a new fund to invest in cryptocurrencies and startups in the sector. By the end of May, well-known figure in the venture capital field, Eric Newcomer, revealed that the fund set up by the company had increased to $2 billion.

Reportedly, the primary investors in the third cryptocurrency fund mostly consist of limited partners from the company's previous cryptocurrency funds, all of which have seen substantial returns since their inception. According to CoinDesk, a16z made over $440 million in profits by selling Coinbase stocks shortly after Coinbase went public on the Nasdaq. As of February 2021, a16z's investment portfolio in the cryptocurrency field:

Rising Trend in Cryptocurrency Venture Capital

Despite the less than ideal performance of the cryptocurrency market in the second quarter, with Bitcoin prices even dropping below $30,000 at one point, more and more investors are beginning to question whether the bull market for cryptocurrencies has come to an end. However, venture capitalists have not ceased funding cryptocurrency startups during this critical period.

Framework Ventures recently announced a $100 million cryptocurrency fund focused on investing in DeFi projects. Meanwhile, veteran venture capital firm Blockchain Capital also recently announced a $300 million venture fund, backed by payment giants PayPal and Visa.

Additionally, according to data from The Block, investors poured over $8.8 billion into cryptocurrency and blockchain startups in 2021, compared to $30.7 billion for the entire year of 2020. From this perspective, the industry as a whole has not lost its momentum for innovation and development despite the market downturn.