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A16z Launches $4.5 Billion Crypto Fund Focused on Web3 Opportunities

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Sergio Goschenko

A16z, one of the most influential VC firms in the crypto field, has announced the launch of a new cryptocurrency fund to invest in the development of Web3 startups. This fourth crypto fund from the firm, which will launch with a budget of $4.5 billion dollars, is set to focus on several key fields in the crypto environment, including blockchain games and decentralized finance.

A16z Bets Big on Web3 and Crypto

A16z, one of the most active VC firms in crypto, has revealed it is launching yet another crypto investment fund. The new endeavor of the company, which will have $4.5 billion at its disposal, will focus on Web3 investments in companies at any growth rate. This, according to the company, is a bet on blockchain as one of the important technologies of the future.

A blog post written by Chris Dixon, a general partner at A16z and founder and leader of its crypto division, stated:

We think we are now entering the golden era of Web3. Programmable blockchains are sufficiently advanced, and a diverse range of apps have reached tens of millions of users. More importantly, a massive wave of world-class talent has entered Web3 over the last year.

With this capital, the funds invested by A16z in the crypto ecosystem go over the $7.6 billion mark.

Investment Objectives

A16z also explained how it is allocating the funds. In the blog post, Dixon clarifies that $1.5 billion will be put in seed investments, for companies that are still in the initial stages of their growth, and have to rely on investors to fund their operations. The other $3 billion will be put behind various venture investments not yet specified by the company.

The scope of A16z is large, the firm stating its investments will encompass different areas of the crypto community, including “web3 games, Defi, decentralized social media, self-sovereign identity, layer 1 and layer 2 infrastructure, bridges, DAOs, governance, NFT communities, privacy, creator monetization, regenerative finance, new applications of ZK proofs, decentralized content & story creation.”

The company also announced it will keep growing its operational team to offer better assistance to its portfolio companies, including research and engineering, security, talent and people, legal assistance, and marketing.

A16z has also been active in other recent investments involving crypto and tokenization. It recently led an investment round in Flowcarbon, a carbon tokenization company backed by Wework co-founder Adam Neumann.

What do you think about A16z’s new $4.5 billion crypto and Web3 fund? Tell us in the comments section below.

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