Also called a16z, the famous American venture capital fund Andreessen Horowitz was founded in 2009 by Marc Andreessen and Ben Horowitz. In 2012 Chris Dixon, a programmer since childhood, joined the company as a general partner. He helped the company become a central crypto entity. But, after having had a good time, the a16z company currently appears to be going through a lean period.
The period of the fat cow for Andreessen Horowitz
According to a recent item of the Wall Street Journal, Andreessen Horowitz made a big bet on the cryptocurrency sector last year during an uptrend. The famed venture capital firm has become Silicon Valley’s largest digital asset bull, largely thanks to Chris Dixon.
As a strong advocate of blockchain technology, Dixon quickly encouraged the company to invest in the cryptocurrency industry upon its arrival in 2012. Under the leadership of the general partner, a16z has invested approximately $ 50 million in crypto projects over two years.
interest Dixon’s value for this sector increased dramatically with the launch of Ethereum in 2015. Dixon then encouraged Marc Andreessen and Ben Horowitz to launch a project to create a crypto fund. Andreessen Horowitz first launched a $ 350 million crypto fund in 2018, which helped him maintain his bullish point that year.
In 2020, the company launched another crypto fund, totaling $ 515 million. By the end of 2021, the first cryptocurrency fund had multiplied its initial investment by 10.6 times to become Andreessen’s top performer.
Towards a company decline with the bearish trend?
In May 2022, a16z announced the launch of the funds the largest cryptocurrency ever in the venture capital world. It was a $ 4.5 billion fund. But with prices plummeting in the cryptocurrency market, the company has lost billions of dollars in earnings for its funds.
According to the Wall Street Journal, during the first half of 2022, Andreessen’s Largest Cryptocurrency Fund Down Around 40%. Now many investors believe this the company went too far with its May crypto fund.
The general partner of the venture capital firm Tenacity Venture Capital has issued a statement on the matter. In fact, Ben Narasin said:They’ve just taken things so far with cryptocurrencies that I’m not sure they can rebalance“.
Get a summary of what’s new in the world of cryptocurrencies by signing up for our new servicedaily and weekly so as not to miss any of the indispensable Cointribunes!
Far from dulling my enthusiasm, a fruitless investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to transmit information relating to this ecosystem with my pen.