Crypto Venture Capital Firms Amass Billions Of Dollars In Crypto Assets Management

According to Filings, crypto venture capitals manage a vast amount of crypto assets. Andreessen Horowitz’s (a16z) crypto funds were also revealed to be valued at over $9 billion.

Crypto assets worth billions of dollars have been amassed under the management of venture capital (VC) firms, which are focused on Web3 projects, and crypto enterprises.

Web3 and crypto investing business Paradigm’s assets under management figure were recently released. According to Filings, the firm has $13.2 billion in crypto assets, a 343 percent increase from the $2.98 billion stated in a December 2020 file.

Eric Newcomer, a business journalist, studied the documents. In an article for his newsletter, he examined recent petitions to the Securities and Exchange Commission (SEC) for some of the largest venture capital firms in the Web3 and crypto industries.

These businesses must disclose their regulatory crypto assets under management to the SEC to be registered as an “investment advisor.”

The applications also revealed that Andreessen Horowitz’s (a16z) crypto-focused funds were worth approximately $9 billion. Total assets under management for all investments surpassed $54.6 billion.

Sequoia Capital and Tiger Global also reported large figures, with $85.5 billion and $124.7 billion, respectively, with Tiger reporting a 58 percent growth from $79.1 billion in last year’s reports.

The findings follow a recent revelation that venture capital funds are pouring into cryptocurrency. Global blockchain businesses received $25.2 billion in venture capital funding in 2021, a 713 percent growth from $3.1 billion in 2020.

Expectations for 2022 may be higher. a16z stated in January that it is preparing to raise $4.5 billion for its latest cryptocurrency fund. Venture finance firms are also looking closely at Solana’s NFT services for additional potential.

According to a report, the Solana network provides considerably lower transaction costs than Ethereum at faster speeds, and a few Solana-based gaming and NFT companies are receiving considerable funding from VCs.

On Friday, April 1st, Fractal, a Solana NFT gaming platform, raised $35 million in a round led by Paradigm with participation from a16z. Magic Eden, a popular Solana NFT market, raised $27 million in a Series A investment led by Paradigm in mid-March, with additional money coming from Sequoia Capital.