(Rejected) a16z's Aim for $4.5B Crypto Funds Will Break Previous Record

Andreessen Horowitz (a16z) is aiming to raise $4.5 billion for cryptocurrency funds. In doing so, the company will break investment firm Paradigm's record of $2.5 billion from November 2021.

The Silicon Valley-based Andreessen Horowitz plan's to secure the funding by March which will nearly double the firm's previous crypto fund of $2.2 billion.

According to the Financial Times, the firm is targeting to raise $3.5 billion for its most recent cryptocurrency venture fund and another $1 billion for a new, distinct fund that would prioritize seed investments in crypto assets startups.

The firm is a veteran investor in technology firms but has also invested heavily in biotech, fintech and cryptocurrency. Among its most notable investments are Facebook, Airbnb, Twitter, Coinbase and Stripe, while also investing in cryptocurrency projects such as Solana Labs, OpenSea, Near and Uniswap.

Currently, Paradigm holds the record for the highest cryptocurrency funds. The firms had said that it would invest the funds alongside Paradigm’s flagship fund in big and small cryptocurrency companies, with as much as $100 million-plus as little as $1 million, Blockchain.News reported.

Last week, cryptocurrency exchange FTX almost beat Paradigm's record with the launch of its $2 billion FTX Ventures.

Altogether, cryptocurrency startups received over $31 billion from investors in 2021, while venture capital firms raised a total of $10.7 billion.