In one of our previous reports, we mentioned how multiple institutional investors were getting into the cryptocurrency space, namely George Soros and VC-giant, Andreessen Horowitz. Most recently, Andreessen Horowitz officially announced that it raised $300 million for its first crypto-fund. The venture capital firm shows no signs of hesitation to enter the space, despite the overall bearish sentiment within the cryptospace these past two quarters.
Chris Dixon, a general partner at Andreessen Horowitz, foresees monumental opportunity in maintaining a long-term position within the space as a whole. “There’s potential in the technology, and some of the downturns can be the best investments… there are wild fluctuations in the price, and we see that as an opportunity.”
Similarities have been drawn by Dixon to the mobile application development boom just prior to 2010. A blockchain protocol that has caught fire with millions of users remains to be seen; Dixon sees that as a huge opportunity. According to the venture capital firm’s official blog, A16z, there are five underlying principles behind its new fund:
One thing is for sure, Andreessen Horowitz’s crypto-fund is now a big league player within the space. With an impressive portfolio containing prominent tech companies such as Airbnb, Buzzfeed, Coinbase, Facebook, and Twitter, the venture capital firms brings with it an experienced network of business giants who aim to propel the crypto space into new heights.