Andreessen Horowitz to raise $2 billion for third crypto fund - TCR

• The venture capital fund plans to launch its third crypto fund and raise $2 billion for the same 
• Investments have amassed $515 million with the previous fund as it continues to support projects in the crypto space 
• A16z has liquified its investments in Bitcoin, Ethereum and Coinbase IPO before the cryptocurrency market suffered the crash in May

There are very few funds that help research and development studies in the cryptocurrency space. Furthermore, there has never been a fund that raises $2 billion to funnel startups in digital assets. Marc Andreessen and Ben Horowitz founded a16z in 2009 has pumped in millions of dollars in technology and companies that help the growth of digital currencies. Its Crypto Fund II invested $515 million in businesses, networks and technological advancements in cryptocurrencies and blockchain networks. 

A16z has laid a strong foundation for crypto assets 

The fund is in the process to triple its cryptocurrency investments within a span of three years. It launched its first fund in 2018 and has not looked back since then. The size of the fund is twice of what experts or rumours are to be believed. It is poised to receive $50 million in management fees in the first decade of the fund. 

The carry profits for the partners amount to 25% until the fund doubles in size and 30% if managing partners are able to exceed the threshold. The total assets under management for the fund is $16.5 billion out of which crypto funds amount to $865.5 million. The staggering numbers were possible under a sound leadership management team that had faith in digital currencies and their evolution. 

The fund is active in the crypto investment world     

The managers of the fund have reportedly exited from ethereum before prices went south.  The shares were sold for $3800 as stated by sources close to the executives at a16z. It also liquified its investments in Coinbase after it went public in April. Moreover, Bitcoin investments too, saw the light of the day before its worst crash in recent history took place. 

While it remains active in the market, it faces stiff competition from Matt Huang and Fred Ehrsam’s Paradigm that also invests in crypto startups and projects. Several partners represent members on both the boards and hence the competition has intensified. It plans to invest in companies like Talos and Uniswap in the near future.