Andreessen Horowitz (also known as a16z) is one of the top venture capital funds in the world. Their assets under management surpass the $10 billion mark.
One of the funds operated is “a16zcrypto” which focuses on the long-term trajectory of non-speculative use cases that will serve billions of people. Their investment strategy is market condition agnostic, meaning they are prepared to heavily invest shall another crypto-winter emerge.
Their latest venture, “Crypto Fund II”, contains $515 million worth of capital ready to be invested in crypto networks and businesses. Their focus with this particular fund will be sectioned in five elements:
- Next generation payments: businesses improving upon the current financial infrastructure used for payments that also help open up economies further.
- Modern store of value: Digitally secure and scarce assets such as Bitcoin that help new generations protect themselves against inflation similar to Gold’s role in the past.
- Decentralised Finance (DeFi): Permissionless and open-source financial product platforms that offer lending, borrowing, derivatives, insurance.
- New ways for creators to monetize: Crypto-monetisation for writers, musicians, podcast creators etc. similar to what was seen in the gaming industry.
- Web 3: Early stages of development projects where decisions are made by network participants rather than a single corporate entity about who can exercise which right on a certain platform.
We’re seeing an influx of capital incoming from new sources which is the only way further growth can occur. The most recent and important event was Renaissance Technologies’ entry into the Bitcoin futures market.