The giant American venture capital, aka venture capital, company Andreessen Horowitz recently announced that they want to set up another crypto fund. It is now the company’s fourth crypto-related fund and this time it will certainly raise $4.5 billion to invest in crypto and web3 businesses.
Andreessen Horowitz expects golden crypto century
Venture capital investors generally make investments in smaller startups with the aim of generating huge returns. However, the risks of such investments are very high, which is why they are called venture capitalists.
In January of this year Andreessen Horowitz also announced that they were setting up a $4.5 billion fund. With the new fund, Andreessen Horowitz’s stake is thus doubled, as it were! In total, Andreessen Horowitz has already invested many billions in the crypto industry.
Of the total $4.5 billion, about $1.5 would be earmarked for so-called seed investments† The rest of the amount will be used to invest in blockchain and crypto companies. Especially the metaverse and Web3 will be an important part of Andreessen Horowitz’s investment strategy. According to an official press release the company believes that a ‘Golden Age’ is coming for this new sector.
“We think we are now entering the golden age of web3. Programmable blockchains are sufficiently advanced, and a diverse set of apps have reached tens of millions of users. More importantly, over the past year, a huge wave of world-class talent has entered web3. They are brilliant and passionate and want to build a better internet.”
Institutional crypto adoption
That Andreessen Horowitz is again willing to throw billions, despite the current state of the market, clearly shows that venture capitalists are becoming more and more convinced of the potential of the crypto sector. Both cryptocurrencies as small new companies popping up within the world of crypto are attractive investments as it turns out.
Not only does Andreessen Horowitz’s plan demonstrate confidence in the industry, but it could also give markets a much-needed boost. An investment of several billion can bring a lot in the volatile crypto markets.
