Venture Capital Stake in Cryptos Continues with VC Shop Andreessen Horowitz Raising $9 Billion

Venture Capital firms and cryptos have had a long-standing relationship and it is unlikely to end anytime soon. according to a article, more than 120 companies had made two or more investments in blockchain companies by mid-2018. While the relationship has been long, the level of VC interest in cryptos has soared in recent years.

Venture Capital, Cryptos and 2021

According to Institutional investorVCs invested $32.8 billion in cryptocurrency-based projects in 2021. The report emphasized that the total investment in 2021 was more than all previous years combined.

Some notable facts and figures from the report include:

• 43% of crypto financing went to companies engaged in trading, exchange services, investments and lending crypto assets.

• 17% responded to NFT startups, DAOs, Web3 and the metaverse.

• There were also investments in custody, infrastructure and DeFi.

What is Andreessen Horowitz?

Andreessen Horowitz, also known as a16z, is considered one of the largest venture capital funds on the market. in 2021, a16z launched a fund dedicated to digital assets. At the moment of writing, a16z had $26.2 billion in assets under management. The AUM of the Crypto funds was $3.1 billion.

Notable active investments within the crypto portfolio include Dapper, diem, Near, open sea, Polychain Capital, and Uniswap. Recent outputs include: Coinbase (DPO: Coin).

Andreessen Horowitz raises $9 billion

Such is Andreessen Horowitz’s position in the VC space that it is experiencing little difficulty in raising capital. News touched the wires night of Andreessen Horowitz raising $9 billion to further his involvement in both crypto and technology.

Looking at the global breakdown of VC investments in 2021, VCs can look to build their exposure to NFT startups, DAOs, Web3 and the Metaverse. Just last month, Venture Fund TGV4 Reportedly $25 million invested in Web3 blockchain companies. According to the report, the company wants to invest in major industries such as infrastructure and financial services, including Play-To-Earn games (GameFi), metaverse and NFTs.

Story continues

Looking to the coming year

It could be a big year ahead for start-ups, late-stage investment companies and investors. However, much will depend on the regulatory landscape. Around the turn of the year there was plenty of regulator to chatter and activity that suggests that more surveillance is on the way.

China is a country that wants to curb growth in the Metaverse. Last month we had reported about some well-known Chinese multinationals looking to enter the Metaverse amid increasing government surveillance.

This one article was originally posted on FX Empire

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