Amid the correcting market, leading venture capital firm Andreessen Horowitz raised $300 million, designated for its dedicated cryptocurrency fund. The company has revealed its plans to invest the money over the next two to three years.
A Patient Approach
Andreessen Horowitz is a major VC firm which has set its sight on the cryptocurrency market, raising a total of $300 million planned for future investments. General partner at the company, Chris Dixon, told CNBC that the firm has taken a rather patient, long-term approach towards the space. According to him, the money will be invested within the next two to three years, and the investments are to be held for up to ten years.
What is more, the fund aims to acquire a fairly diversified portfolio of crypto-based assets from early-stage coins and tokens to more advanced and later-stage networks. According to Dixon, Andreessen Horowitz will keep investing aggressively in the field, outlining the potential of its underlying technology and the fact that current market dips can actually present great investment opportunities. Dixon said:
We’ve experienced ups and downs in the cryptocurrency market, and expect there will be many more. […] There’s potential in the technology, and some of the downturns can be the best investments.
Apart from raising over a quarter billion dollars, the VC firm has brought in another general partner to lead the fund. Katie Haun, a former U.S. Department of Justice (DOJ) federal prosecutor, will head the dedicated cryptocurrency fund.
Interestingly enough, Haun is also on the board of directors of the leading US cryptocurrency exchange – Coinbase. The hire clearly outlines the company’s hopes that Haun’s regulatory background will help the fund move forward. This falls in line with the former prosecutor’s own position on the matter, where she said:
We want to see crypto move beyond the speculation phase and see it eventually solve real-world problems for millions or even billions of people.
She also touched on the fact that the fund’s focus will be placed on the team of founders of the projects which will be targeted for investment. This stems from the fact that a lot of them don’t have a completed product or service and that some are not even live at the time of the investment.
Do you think Andreessen Horowitz is on the right track investing in the cryptocurrency market? Don’t hesitate to let us know in the comments below!
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