Venture capital giant Andreessen Horowitz (a16z) is reportedly seeking to raise a substantial USD 10 billion for new investments, signaling a significant strategic shift. While known for its strong backing of the cryptocurrency sector, the firm's latest fundraising initiative notably omits a dedicated crypto fund, instead prioritizing emerging technologies like artificial intelligence and defense.
A New Horizon: AI and Defense at the Forefront
According to reports, a16z aims to secure approximately USD 10 billion across various new investment vehicles. The bulk of this funding, around USD 6 billion, is earmarked for investments in more mature companies. Additionally, USD 1.5 billion each is allocated to both AI applications and AI infrastructure funds, underscoring the firm's concentrated bet on the artificial intelligence boom. Over USD 1 billion is also designated for a fund focused on defense and manufacturing sectors. The complete absence of a dedicated cryptocurrency fund in these plans marks a notable departure for one of Silicon Valley's most influential proponents of digital assets, especially given its recent optimistic "State of Crypto" report.
Crypto: Not Abandoned, But No Longer a Flagship Fund
Despite the lack of a specific crypto fund within this USD 10 billion fundraising round, a16z has not entirely withdrawn from the digital asset space. Its dedicated crypto division, a16z Crypto, continues to make strategic investments, as evidenced by a recent USD 50 million investment in Jito, a liquid staking protocol for Solana, and a USD 55 million investment in Web3 company LayerZero. Furthermore, the firm's decision earlier this year to close its UK offices to concentrate its crypto initiatives in the United States reinforces its ongoing commitment to the sector, albeit with a refined focus rather than a flagship, large-scale fund as part of this latest capital raise.
