Venture capital giant Andreessen Horowitz is reportedly planning to build a new billion-dollar fund geared towards the growing crypto ecosystem.
London-based news outlet Financial Times quoted the four people involved as saying that the new fund aims to raise between $800 million to $1 billion to invest in cryptocurrencies as well as crypto startups.
By target amount, Andreessen’s third crypto investment fund could be almost twice as big as the $515 million Crypto Fund II, which the VC giant launched for crypto networks and businesses last year.
It could also make the new fund one of the largest crypto-focused capital pools, rivaling investment firm Paradigm, which raised a total of $1 billion from investors.
Andreessen is raising investment funds after successfully investing in Coinbase. The Silicon Valley-based company is one of the two largest crypto exchange outside investors, along with Union Square.
Coinbase is now worth nearly $60 billion after debuting on the Nasdaq earlier this month. Regulatory filings show that Andreessen has sold nearly $120 million of his stake on the crypto exchange since going public.
The report comes weeks after CoinShares CSO Meltem Demirors predicted that early Coinbase investors would likely reinvest their profits back into the crypto market.
“Coinbase’s IPO will score hundreds, if not thousands, of multimillionaires and billionaires who all love crypto and will probably take some of their listing proceeds and continue to invest in the crypto ecosystem.
There’s a nice recursive effect where the industry isn’t just about assets. Now it’s really about the company, which we’ve been investing in for almost a decade now. ”