A16z, a leading VC company in crypto, is reportedly ramping up its investments in the field this year. The company is said to be looking for $4.5 billion to invest in different cryptocurrency-related funds. This amount more than doubles the entire amount the company invested in crypto last year.
A16z will double down on crypto
A16z will continue to invest funds in cryptocurrency-related projects this year, according to reports. The venture capital firm, which focuses its investments on tech-related businesses and has more than $28 billion in assets, is looking to invest $4.5 billion in two different crypto-related funds this year.
According to people briefed in the exploratory meetings to complete this fund, A16z will be seeking $3.5 billion to invest in a new cryptocurrency fund and $1 billion to power another fund directed for seed investments in early-stage startups.
The company is reportedly looking for different participants for help in acquiring these funds, and A16z is targeting April as the month to hit the target. If the company really manages to raise funds, it would be one of the biggest funds in the history of the cryptocurrency scene. Last year, A16z invested over $2 billion in crypto startups. This initiative, if carried out, would represent more than double the amount invested by the company last year.
Crypto Investments and Opposition
A16z has managed to get in some early investments in the cryptocurrency sphere last year. In August, the company invested in an uncollateralized cryptocurrency-based lending platform called Truefi. That same month, it also invested in a play-to-earn guild called Yield Guild games, which identifies investment opportunities in blockchain games.
Later, in October, the company led a fundraiser for Alchemy, a leading Web3 infrastructure provider. And in November, A16z also led the Series C investment round of Mythical Games, a blockchain game company.
The interest of A16z and other companies in crypto, metaverse, and web3-related projects has made them a target of criticism in recent times. Jack Dorsey, the former CEO of Twitter, has called out those who want to own the current take on the metaverse through their investments in startups. Elon Musk also criticized the state of web3, stating that it seemed more a buzzword than a reality, but that he was excited about what this movement might bring in the future.
