The firm mentioned Thursday it had raised a complete of $515 million – greater than the unique $450 million goal – for a second fund referred to as “Crypto Fund II,” devoted to cryptocurrency and blockchain initiatives. It’s additionally greater than $150 million raised for VC’s first crypto fund, which launched again in the summertime of 2019.
In the weblog publish asserting the brand new fund, a16z says it’s wanting into initiatives touching next-generation funds, decentralized finance (DeFi), new monetization fashions and Web3 (the idea of a decentralized web).
On DeFi, the place complete worth handed the billion-dollar milestone earlier this 12 months, a16z mentioned it noticed excessive potential within the composability of belongings. “DeFi opens the components of finance to the same recombination and experimentation that makes open-source software so powerful,” it mentioned.
This marks a distinction to a16z’s first crypto fund. In its preliminary funding thesis, the VC talked about a handful of what it noticed as attention-grabbing use circumstances, together with stablecoins, monetary inclusion and the tokenization of real-world belongings.
However, it included the caveat that “we are still early in the crypto movement. The infrastructure needs to be improved and the applications are difficult for non-early adopters to use. Many crypto applications still getdismissed as toys.”
Thursday’s weblog publish suggests a16z now considers the business could have reached important mass.
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