Launch of a $4.5 billion fund to invest in cryptostapes
On May 25, 2022, one of the world’s largest venture capital companies, Andreessen Horowitz, announced the raising of $4.5 billion in its largest venture fund for investments in cryptocurrency and Web3 startups. This fund, the fourth in a row, will allow the company to bring the total amount of attracted investments in cryptocurrencies to $7.6 billion. In the new fund, $1.5 billion will be used for sowing investments, and the remaining funds will be used for venture capital investments. This fund is more than twice the amount raised in the third fund in June 2021.
Chris Dixon, managing partner and founder of the cryptocurrency division a16z, said he believes the industry is entering the “golden era of Web3.”
Programmable blockchains are quite developed, and a variety of applications have reached tens of millions of users, “said Dixon. More importantly, over the past year, a huge wave of talented world-class specialists has come to Web3. They are brilliant, passionate and strive to build a better Internet.
Dixon said a16z will use the fund to invest in Web3 startups at all stages of industry development, as well as to expand its own operational functions to help its portfolio companies solve problems. In particular, expand research and engineering in the field of cryptography, the design of mechanisms, protocols and tokenomics; Security features for key management and smart contracts recruit talent and staff; and help overcome legal and regulatory obstacles.
This latest fund is created during one of the largest recessions in the cryptocurrency market and Luna cryptocurrency crash together with its related currency – stablekoiny TerraUSD. Despite this, venture capital investments in the crypto industry continue to flow.
Speaking about the fund, Dixon said that the “golden era” comes when the right factors come together, such as infrastructure, talent and community, which allow the formation of “legendary teams.” He added that, in his opinion, the talented Web3 specialists will build the “next generation of the Internet.”
Our frequent conversations with specialists in this area gave us confidence that we can go to great accomplishments, and we are grateful to be partners with them, “Dixon said.Investing in Metatheory
On May 16, 2022, the Web3 company Metatheory, founded by Twitch co-founder Kevin Lin, raised $24 million in Series A funding. More details here.
Investing in an American enterprise risk management platform
On February 24, 2022, AnyRoad, a company developing a platform for enterprise risk management, announced the closure of the Series B financing round and attracting an investment of $47 million. Funding was received under the leadership of funds managed by BlackRock with the participation of Runa Capital, Andreessen Horowitz (a16z) and Kaiser Permanente. Existing investors Rally Ventures, Precursor Ventures and Day One Ventures, as well as new investors Commonfund and Corner Ventures, joined the round with a retransmission. More details here.
Raising $9 billion for three new investment funds
On January 7, 2022, it became known that Andreessen Horowitz raised $9 billion for three new funds. The largest of the new investment instruments, called the “Growth Fund,” is launched with an initial capital of $5 billion. It is being deployed along with a $1.5 billion biophond and a $2.5 billion venture capital fund.
Ben Horowitz, co-founder and general partner of Andreessen Horowitz, wrote on his blog that the company will “write checks worth between $25,000 and hundreds of millions of dollars.” At the launch of the two previous funds in 2020, Andreessen Horowitz reported $16.5 billion in asset management. The additional $9 billion raised by Andreessen Horowitz will allow the investor giant to further expand its portfolio.
You can ask: “Why invest $9 billion in a completely new group of technology companies?” Our answer begins with one of the main cultural values of the company: we believe in the future and rely on it, “Ben Horowitz wrote on January 7. – At Andreessen Horowitz we especially believe in a future based on technology. There is nothing more worthwhile than our most brilliant minds, who take huge risks to improve the world by doing something more than themselves. As my partner Mark describes in the book Technology Saves the World, without significant advances in technology, life on Earth will definitely not improve and may well deteriorate.
The fact that $1.5 billion of the $9 billion in new capital raised by Andreessen Horowitz will go to the new biofund underlines its growing attention to the biotechnology and health sector. The new biofund is likely to allow Andreessen Horowitz to implement its investment strategy in these areas.
This news of three new funds appeared just five months after the launch of a separate fund in the amount of $400 million was announced on August 27, 2021 to support startups at the sowing stage. At the time, the firm reported that initial funding rounds have recently accounted for about half of its investments. In 2021, Andreessen Horowitz raised $2.2 billion for a fund specializing in blockchain and cryptocurrencies.
According to a Crunchbase study, in 2021, global venture capital investments reached $643 billion, which is 92% more compared to 2020. In 2020, on average, about 10 new unicorn startups worth $1 billion or more were created every week. Financial services startups raised the most funds, followed by healthcare, e-commerce and transportation companies.
Investing in a startup for realtors and tenants Zuma
AmericanstartupZuma, developing an application AI with for realtors and tenants, announced on November 19, 2021 to raise initial funding in the amount of $6.7 million and exit the beta testing phase. The $6.7 million round was led by Andreessen Horowitz with the participation of Y Combinator Range Ventures, Liquid 2,, Day One Ventures Soma Capital and a group of private investors, including Apartment List co-founder Chris Erickson, former chief operating officer of Y Combinator Kasar Eunice and founder of Lambda Oostda. The latest round of funding gives Zuma a total of about $7.2 million raised at the time of November 19. More. here
Investing in the blockchain company Matter Labs
Founded by Ukrainian Alexei Glukhovsky, startupMatter Labs developing a scaling protocol, blockchainEthereum raised $50 million as part of the Series B funding round, in particular from Andreessen Horowitz. Earlier, in February 2021, the startup raised $6 million through round A. More. here
Launch of a $400 million fund to invest in IT startups
On August 27, 2021, venture capital company Andreessen Horowitz announced the launch of a new fund of $400 million to support technology startups in the early stages. Andreessen Horowitz general partner Martin Casado noted that the company usually invests about $6 million in startups that are just starting their operations. Together with capital, the company also provides support in various business issues.
This will include access to training and content, an advisory group of analogue companies and a network specifically focused on start-up companies. In addition, the venture capital firm offers assistance in early hiring, product design, marketing and growth and access to the most extensive customer network in the industry as a whole, Andreessen Horowitz said in a statement.
According to Martin Casado, Andreessen Horowitz’s decision to double its start-up investment is part of a broader industry trend. Investments in new startup teams have increased sharply since 2019, the investor said.
In 2021, venture capital activity as a whole increased significantly. According to Crunchbase, in the first half of 2021, the amount of funding for startups reached a historic maximum of $288 billion, which is more than twice the $110 billion invested in 2020.
Andreessen Horowitz entered the top five most active venture capital investors in the first half of 2021 along with Accel, General Catalyst, Tiger Global and Insight Partners. According to estimates, until the beginning of July 2021, more than $6 billion was invested in about 3.5 thousand startups at an early stage. Since Andreessen Horowitz is such a prominent player in the venture capital ecosystem, her decision to launch a special early investment fund could send a strong signal to other investors around the world.
Investing in legal services chatbots DoNotPay
At the end of July 2021, the American chatbot of legal services DoNotPay attracted $10 million in investments, increasing its valuation to $210 million. Andreessen Horowitz, Lux Capital, Tribe Capital, Felicis Ventures, as well as the Day One Ventures fund, the founder of which is Maria Drokova, the ex-speaker of the Nashi youth movement, who kissed Vladimir Putin in cheek on Seliger in 2009, invested in the startup. More details here.
Launch of a $2.2 billion fund for investments in crypto companies
At the end of June 2021, Andreessen Horowitz launched its third fund worth $2.2 billion for investments in cryptographic companies – Crypto Fund III. This is the largest vertical fund of the company in the history of its existence, the publication TechCrunch notes. More details here.
Investing in the fintech company Plaid
In early April 2021, fintechstartupPlaid he raised $425 million as part of the Series D financing round. The investment round was led by venture capital company Altimeter Capital, Andreessen Horowitz also invested in the startup. The capitalization of the American startup is $13.4 billion. here More.
Investing in DOS for Industrial Robots has attracted tens of millions
At the end of February 2021, Symbio attracted $30 million in investments. The funding round was led by the ACMECapital fund. Andreessen Horowitz, Eclipse Ventures and The House Fund also took part in the deal. More details here.
Launch of a $450 million fund for investments in cryptocurrency companies
In mid-April 2020, it became known that Andreessen Horowitz plans to raise $450 million to finance cryptocurrency projects, creating a new fund for these purposes. It is planned to collect the necessary amount by the end of April 2020, while the company has not set strict restrictions on the size of the fund. Fund participants are not disclosed.
The new fund was announced about 2 years after the creation of another similar fund for investing in startups involved in the development of blockchain technology. The previous fund was called a16z crypto, and its size amounted to $350 million.
One of the companies that received funds from a16z crypto was Dfinity. It creates an “Internet computer” – a computing platform consisting of disparate data centers around the world, operating under a single protocol.
According to CB Insights, in 2018, the volume of investments in cryptocurrencies and blockchain technology tripled and reached $4.3 billion. However, in 2019 it decreased by a third compared to 2018. At the beginning of 2020, it can be stated that cryptocurrencies have largely survived the shocks in the capital markets caused by COVID-19.
It is worth noting that in addition to Dfinity, Andreessen’s investment portfolio contains more than 20 young companies engaged in virtual currencies and blockchain. Among them, Coinbase is a large platform for buying and selling virtual money. In 2013, the fund led the round of investments in this project in the amount of $25 million. In 2018, after the next round of investments, the volume of which amounted to $300 million, the platform was estimated at $8 billion.
Andreessen Horowitz is known primarily for its investments in companies such as Facebook and Twitter. She was also one of the few to support Libra – a project to create a cryptocurrency from Facebook founder and head Mark Zuckerberg, the announcement of which was met with skepticism.
Investing in Stripe
In mid-April 2020, it became known about attracting Stripe about $600 million in investments. According to the results of the financing round, the company was valued at $36 billion, which makes it the most expensive startup in Silicon Valley. This is more than the cost of Palantir Technologies and Airbnb. More details here.
Investing in Waymo
On March 2, 2020, Waymo announced the attraction of $2.25 billion in investments. This money will go to the global expansion of the developer of unmanned vehicles. More details here.
Companies to be invested