Opinion: Andreessen Horowitz’s third crypto fund to hold $2 billion in assets

Leading Silicon Valley venture firm Andreessen Horowitz (a16z) plans to launch a third cryptocurrency fund with $2 billion in assets. This, reported by former Bloomberg columnist Eric Newcomer, citing his sources.

“The new financing will bolster the authority of the fund’s leaders, Chris Dixon and Katie Haun. I expect this duo will have greater freedom to operate, with the ability to work independently of the other participants in the venture firm. The latter remains tightly controlled by the co-founders Marc Andreessen and Ben Horowitz,” Newcomer wrote.

According to him, the new crypto fund plans to charge a 2.5% management fee during the first decade after launch. With $2 billion in assets, that amounts to $50 million per year. It also provides a 25% carry on gains and 30% when the value of its assets under management doubles. In the event of losses, no carry is payable.

Newcomer stressed that Andreessen Horowitz’s investment in Coinbase has yielded significant profits for the venture firm. After IPO of the largest American crypto exchange to the public market, a16z soon sold a portion of Coinbase shares. In addition, Andreessen Horowitz sold part of Ethereum at a price around $3,800. At the time of writing, ETH was trading near $2,400.

In 2020, a16z raised $515 million for its second fund. In 2018, the venture firm launched its first crypto fund with $300 million in capital.

On March 18, a16z backed the NFT marketplace OpenSea in a Series A investment round of $23 million. In early May, Andreessen Horowitz led the seed round funding of the NFT startup RTFKT.

Earlier it was reported that the third fund from a16z could be up to $1 billion.

Follow ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news, infographics and opinions.