Venture Capital Firm Andreessen Horowitz eyeing to raise $1 billion Crypto Fund
This comes after Andreessen’s success with investing in Coinbase.
As reported by a leading Indian daily, the new fund hopes to raise between $800 million and $1 billion from investors.
The development comes as the value of cryptocurrencies has risen dramatically this year, with a slew of top-tier cryptocurrencies making headlines.
This will be the company's third cryptocurrency fund. It plans to raise between $800 million and $1 billion from investors, making it one of the biggest pools of capital dedicated to cryptocurrency and more than twice the size of its predecessor, Coinbase.
A rise in the value of bitcoin, ether, and other cryptos has prompted Andreessen and other companies to start raising large "war chests." Coinbase, which went public in April and has a market capitalization of $60 billion, has inspired crypto venture capitalists. There have also been a slew of direct investments in virtual currencies that have seen significant value increases. These gains have instilled trust in investors, with endowments and foundations renewing their bets.
For instance, Dragonfly Capital received new investments totaling $225 million last month, more than double the amount it received in its first version in 2018.
Andreessen's fundraising will be comparable to Paradigm's, which has raised $1 billion from investors including Yale and Harvard endowments.
Coinbase has teamed up with PayPal to offer users a new way to buy cryptocurrency using PayPal-linked debit cards and bank accounts.
The goal of the project, according to the company, is to make purchasing cryptocurrency as simple as possible, and the collaboration with PayPal is meant to provide a degree of confidence and security with a well-known company.