Amid the ongoing downturn in the global financial markets, Silicon Valley VC firm Andreessen Horowitz (a16z) has announced its latest $4.5 billion Web3 fund, which is dubbed ‘Crypto Fund IV’. The fund more than doubles that of the previous ‘Crypto Fund III’, which was launched in June 2021 at a valuation of $2.2 billion.
The incentive behind this monumental commitment of capital is reported to be to deter competition from the likes of fellow heavyweight VC firms Paradigm and Electric Capital, who have each launched eye-catching Web3-oriented funds across the past year.
With this in mind, Crypto Fund IV is said to have a focus on collaborating with high-potential crypto start-ups, as a16z has specified that one-third of it will be exclusively earmarked for ‘seed deals’, with the rest going to ‘venture investments’. As per the company’s report on the fund, these investments will be made within the areas of Web3 games, DeFi, decentralized social media, self-sovereign identity, layer 1 and layer 2 infrastructures, bridges, DAOs & governance, NFT communities, and more.
The landmark fund may come as a surprise given the crypto market’s vast cooling in recent weeks. Despite current market events, a company spokesperson has stated that a16z is by no means put-off, as its excitement and belief in Web3 transcends any momentary doubts that may come with temporary market bearishness.