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Odaily Translator |Andreessen Horowitz (a16z) plans to raise as much as $4.5 billion for a new group of cryptocurrency funds. This funding goal more than doubles the amount raised by the Fund less than a year ago.

According to the Financial Times

The Silicon Valley-based venture capital firm told investors last week it plans to raise up to $3.5 billion for its latest cryptocurrency venture fund and seed a startup focused on digital assets, people familiar with the discussions said. Invest in independent funds raising up to $1 billion.

a16z plans to finalize its new fund in March, one of the people said. The company declined to comment.

As we all know, a16z is one of the top venture capital firms in Silicon Valley, having previously been an early investor in Facebook, Twitter, Airbnb, Stripe, Coinbase and many other well-known technology groups.

If successful, a16z's two funds could easily surpass any other funds raised to invest in early-stage cryptocurrency startups.

This move shows that major venture capital institutions are gradually accumulating investment in the field of encryption, triggering a boom that has resulted in hundreds of projects aimed at replacing traditional finance.

Investors typically reject VCs trying to raise large amounts of money quickly, preferring smaller, performance-focused funds.However, the recent effort by a16z and other tech investors to raise billions of dollars from large institutions to invest in cryptocurrency projects has brought unprecedented levels of funding to the industry.。

Paradigm is a firm led by former Sequoia Capital partner Matt Huang and Coinbase co-founder Fred Ehrsam. Paradigm was the largest cryptocurrency venture capital fund at the time in November last year

$2.5 billion raisedAccording to PitchBook data, in 2021, global venture capital institutions raised $10.7 billion for funds dedicated to cryptocurrencies, compared with $5.2 billion in 2020.a16z's cryptocurrency arm, led by Chris Dixon and two other investment partners, previously launched its third cryptocurrency fund (Crypto Fund III) in June 2021

$2.2 billion raised, more than double its original funding goal. The firm has invested most of the fund's money.A $1 billion cryptocurrency seed investment fund will be twice the size of the next largest fund of its kind, which was raised by Greylock Partners last September

$500 million fund

. At the time, Greylock called it "the largest venture capital pool in the industry dedicated to supporting project founders on day one."

Investors poured $31.6 billion into cryptocurrency startups last year, nearly seven times as much as in 2020, as hedge funds and other non-traditional backers seek to profit from the fast-growing digital asset project, according to PitchBook data.

a16z was one of the most active cryptocurrency investors last year, striking big deals with gaming startup Sky Mavis, blockchain developer Solana Labs and NFT marketplace OpenSea.

Before a16z launched a fundraising campaign for its fund, one of its top partners, Katie Haun, left to start her own investment group. Katie Haun plans to raise at least $900 million for two separate cryptocurrency funds. a16z has committed $50 million to these funds.