Andreessen Horowitz, a Silicon Valley-based venture capital firm, has reportedly nabbed USD 2.75 billion for two new funds. The new USD2 billion funds will go to a late-stage venture fund, which is headed by the company’s general partner David George. Simultaneously, the remaining USD750 billion will be utilized to fund early-stage enterprises, consumer and fintech offerings. According to the company, “If early-stage venture is about asking ‘What if it works?’ later-stage venture is also about asking ‘Is it working”?’ And just as early-stage investing requires deep vertical expertise, later-stage venture requires deep expertise in the financial evaluation of businesses.”
Furthermore, they elucidate that they have invested as much as USD100 million in later-stage opportunities and that this is not a new area of investments for them. The main difference to what they were doing in the past is that this fund will ultimately be trying to find these new opportunities to invest in. The managing partner Scott Kupor noted that cryptocurrencies were still in its nascency when the company launched in 2013. The creation of its crypto-dedicated USD350 million crypto fund, a16z, already backed a range of ventures like blockchain projects and Initial Coin Offerings (ICOs). Andreessen’s Horowitz’s website also lists Bitcoin (BTC), Ether(ETH), decentralized DNS startup Handshake, dYdX exchange and stablecoin trueusd operator Trusttoken among its crypto-related investments.
Recently, Andreessen Horowitz had announced that it is restructuring the firm by registering all its employees as qualified financial advisors in addition to renounce their former status as a venture capital firm. According to the reports, the restructuring will allow the company to take risks in certain areas of cryptocurrencies.