Andreessen Horowitz's latest $2.2 Billion Crypto Fund III gives it flexibility to do more late-stage VC rounds. The firm previously targeted just $1 billion for the fund, the Financial Times reported in April.
Crypto Fund III is gigantic even by a16z standards. The firm's $3.2 billion late-stage vehicle, which closed last year in conjunction with a $1.3 billion early-stage fund, is the only one to exceed Crypto Fund III in size. Andreessen Horowitz's other crypto funds include a $515 million vehicle closed last year and a $350 million fund from 2018.
A16z's crypto investments exemplify the venture industry's so-called power law, which holds that a small number of investments provide the bulk of returns. Chris Dixon, who has led many of Andreessen Horowitz's crypto investments including Coinbase and Dapper Labs, has called this phenomenon the "Babe Ruth effect."
"The best VCs funds truly do exemplify the Babe Ruth effect: they swing hard, and either hit big or miss big," Dixon wrote in a 2015 blog post. "You can't have grand slams without a lot of strikeouts."
Crypto Fund III is gigantic even by a16z standards. The firm's $3.2 billion late-stage vehicle, which closed last year in conjunction with a $1.3 billion early-stage fund, is the only one to exceed Crypto Fund III in size. Andreessen Horowitz's other crypto funds include a $515 million vehicle closed last year and a $350 million fund from 2018.
A16z's crypto investments exemplify the venture industry's so-called power law, which holds that a small number of investments provide the bulk of returns. Chris Dixon, who has led many of Andreessen Horowitz's crypto investments including Coinbase and Dapper Labs, has called this phenomenon the "Babe Ruth effect."
"The best VCs funds truly do exemplify the Babe Ruth effect: they swing hard, and either hit big or miss big," Dixon wrote in a 2015 blog post. "You can't have grand slams without a lot of strikeouts."
See the whole article on PitchBook here: https://pitchbook.com/news/articles/andreessen-horowitz-launches-crypto-arms-race-as-check-sizes-swell
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