If everyone could have faith in cryptocurrency like Andreessen Horowitz does, the world would be a much better place. On a more serious note though, Andreessen Horowitz has been making investments in cryptocurrency and blockchain technology for over five years now; and by the looks of things, they do not intend to back out now. Andreessen Horowitz is anticipated to invest up to $1 billion into Blockchain and cryptocurrency. Continue reading and find out what Andreessen Horowitz is up to.
About Andreessen Horowitz
Andreessen Horowitz, also known as ‘a16z’ is a private Venture capital firm based in America. The company was founded by Ben Horowitz and Marc Andreessen more than a decade ago. The firm has since grown from three employees to more than 135 employees. Moreover, Andreessen Horowitz has developed a rather diverse portfolio investing in several different industries such as; education, digital entertainment, cloud computing and cybersecurity.
Andreessen Horowitz will not be a Venture Capital Firm Anymore. Why?
Generally, being a venture capital is limiting in that it is difficult for a firm to invest in anything that is not within the traditional start-up landscape. So because Andreessen Horowitz wants to diversify their investments even more, into cryptocurrency to be precise; they filed to be a Registered Investment Advisor for this to be possible. They also went on to commit themselves to raise $300 million for their first crypto fund.
The $ 1 billion investment
Andreessen decided to jump onto the cryptocurrency train like other companies and industries have been doing. With a $1 billion investment into the cryptocurrency industry, the firm will not only deal with digital assets but with distributed ledger and Blockchain technology as well. A statement that Andreessen made before that ‘we are the era of disagreeables’ may have had something to do with their decision.
As part of the process the company would have to take their current employees through background checks, and registering their financial holdings will be mandatory whether it be crypto or fiat. As an RIA Andreessen can invest in whatever they want and will have no limits as to how much of their company funds they invest.
Here are some of Andreessen Horowitz main investments
This is a blockchain company based in Switzerland that focuses on developing a ‘blockchain nervous system’ that is intended to protect users from any attacks.
We all know the famous coinbase! Andreessen Horowitz made an investment of $400 million in three funding rounds in coinbase.
XRP is an open payment network as well as a digital currency. With an aim to connect banks all over the world and make cross-border transactions as well as payment systems easier for users; ripple is a good pick for Andreessen Horowitz.
This company works the same as Bitcoin does except it uses nodes to prove file storage. Filecoin issued a token by its name as well.
Andreessen Horowitz may have had a lot of pressure to decide to invest in cryptocurrency in this way; or they are just trying to expand and move with the times, who knows. Nevertheless, its core fund will remain focused on enterprise and consumer technologies. I believe that they are going in the right direction and if all goes well, they may see a lot of success. Stay tuned for more updates.