- In the wake of Andreessen Horowitz’s plans to raise a $1 billion crypto fund, other VCs are scrambling.
- Between a surge in cryptocurrency values and funding for crypto startups, firms are rushing in.
- “It’s a tsunami,” VC Brian Fakhoury told Insider.
- See more stories on Insider’s business page.
“The coming years will be a period of great drama and excitement revolving around this new technology,” Marc Andreessen wrote in 2014 about bitcoin.
His piece aged well, to say the least.
Yet another crypto-boom era has dawned in the venture world, with endless headlines boasting one wild fundraise after the other. Cryptocurrency exchange Coinbase had a monstrous IPO, non-fungible token startup Dapper Labs recently raised at a $7.5 billion valuation, and Andreessen’s own storied firm, Andreessen Horowitz, is raising a crypto-focused $1 billion fund, the Financial Times reported.
For Andreessen Horowitz, which got into crypto early by investing in Coinbase and Ripple and other crypto-centric VCs, this latest frenzy is both long expected and much celebrated. But others aren’t quite as lucky. With cryptocurrency prices skyrocketing (bitcoin was valued at around $55,300 on Wednesday), several VCs told Insider that firms that haven’t historically invested in crypto are scrambling to catch up, get into deals and make big investments.
“It’s a tsunami,” Brian Fakhoury, an investment analyst at Underscore VC, told Insider.
This newest boom signals a long-term shift, Alexa von Tobel, managing partner of Inspired Capital, believes.
“The fervor right now that you’re feeling is coming from big institutional pools of capital moving into crypto,” she said. “I think that will only continue.”
Already in 2021, there’s been over $1 billion in venture capital funding invested in non-fungible token and decentralized finance startups, according to PitchBook. In the last few days alone, von Tobel’s said she’s gotten pitches from about five crypto companies.
This latest chapter comes after two years of what Sierra Ventures investor Adam…