Andreessen Horowitz closes $4.5 billion crypto fund amid market turmoil

Although the cryptocurrency markets seem to be going a long and hard way forward based on recent weeks of token turmoil, venture investors looking to get their hands on the future of Web3 aren’t slowing down.

On Wednesday, venture capital giant A16Z announced the closing of its fourth cryptocurrency fund at $4.5 billion. This brings the total amount of money that Andreessen Horowitz has invested in the cryptocurrency and blockchain business to more than $7.6 billion.

The new investment vehicle will focus on early stage ideas as well as more mature projects that have already shown some attractiveness. According to the company, $1.5 billion of funding will be used for seed injections, while $3 billion will be allocated to venture capital investments.

Despite the current downtown market, the company is optimistic about discovering new horizons. Mark Andreessen, co-founder of A16Z, commented that the cryptocurrency is still in its “early roles,” adding that the market has a lot of growth potential.

The fourth cipher box has been in the works for some time now; Cointelegraph first reported on it in January. It doubles the size of the previous crypto fund and shows the growing interest among the company’s limited partners in increasing their exposure to crypto companies.

The new funding has come less than a year since Andreessen Horowitz announced the launch of the $2.2 billion Crypto Fund III. A16z’s dominance has made waves in the cryptocurrency industry over recent months, with several cryptocurrency original companies such as Paradigm and Electric capital raised huge sums to compete with it.

Related: $3 billion is pouring into metaverse and Web3 games this month as a16z tips at $600 million

Previously known for investments in Instagram and Slack, it first entered the crypto sector with an investment in Coinbase in 2013. It has since backed a number of crypto companies, including Polychain Capital, OpenSea, Solana (SOL), Avalanche (AVAX), and Yoga Labs.