VC Firm Andreesen Horowitz Raises $4.5 Billion Crypto Fund

U.S. venture capital firm Andreesen Horowitz has raised $4.5 billion U.S. to invest in cryptocurrencies as prices for digital coins and tokens continue to fall.

The Silicon Valley firm announced a new $4.5 billion U.S. fund for backing cryptocurrencies and blockchain companies. It marks Andreessen’s fourth fund for the asset class and brings its total raised for cryptocurrencies and blockchain investments to $7.6 billion U.S.

The firm said in a news release that it plans to invest in both the cryptocurrencies behind projects and in company equity.

Andreessen’s first crypto-focused fund was launched in 2018 during a downturn that became known as the “crypto winter.”

Cryptocurrency prices have fallen significantly from their all-time highs this year, with Bitcoin (BTC), the largest digital asset, down more than 50% since its peak reached last November. Earlier this month, the crash of stablecoin TerraUSD (UST) shook investor sentiment further.

But Andreesen Horowitz likens the long-term opportunity in cryptocurrencies to the next major computing cycle, after personal computers in the 1980s, the internet in the 1990s, and mobile computing in the 2000s.

Andreessen Horowitz is known for placing successful early bets on Instagram, Lyft (LYFT), Pinterest (PINS) and Slack. The firm made its first major cryptocurrency investment with Coinbase (COIN) back in 2013. Andreesen has since backed a variety of start-ups in the cryptocurrency and NFT space, including Alchemy, Avalanche, Dapper Labs, OpenSea, Solana and Yuga Labs.

While cryptocurrencies may be struggling to regain momentum, money flowing into private companies is at all-time highs. Blockchain start-ups raised a record $25 billion U.S. in venture capital dollars last year, according to data from CB Insights.