Andreesen Horowitz decides to fund cryptocurrency companies with prospects amid the recurring market crash.
According to CNBC, the Silicon Valley-based venture capital firm Andreessen Horowitz has announced a $4.5 billion fund to support crypto and blockchain companies.
Andreessen Horowitz, founded on July 6, 2009, by Marc Andreessen and Ben Horowitz, specializes in investing in start-ups and growth companies across a variety of industries. The decision to launch the $4.5 billion fund coincides with a market downturn.
The venture firm’s latest investment, however, is not the first of its kind. During the crypto winter of 2018, the company raised $300 million in its first crypto-focused fund.
In a phone interview with CNBC, Ariana Simpson, a general partner at the venture capital firm, believes the bullish run will continue as long as people pay more attention to ongoing price activity. Instead, building technologies would cause a bear market.
Crypto has recently experienced a significant drop, but Simpson has remained composed in the face of the decline. According to her, the company only invests in top-tier companies whose projects are deemed to meet their standards.
Instagram and Pinterest are just two of many companies that the company has previously predicted will succeed. While this is the company’s fourth digital assets-related fund, its first major investment in cryptocurrency was with Coinbase in 2013.
Andreessen Horowitz may inspire a bearish turn in the coming weeks or months, but much has already been losamidof an agonizing bullish run.
A bearish run was predicted a fortnight ago, but it has yet to materialize. Coinshares data shows a loss of $141 million in crypto-backed investment funds in the last week.
In comparison, by the end of the previous week, $274 had been gained. Bitcoin-backed funds suffered the most, losing nearly $154 million.