Venture capital firm a16z announced it was launching its fourth Web3-centered fund, which totals $4.5 billion and brings the total assets allocated by a16z for blockchain-related projects to $7.6 billion. The company’s current portfolio includes Optimism, Coinbase, Solana, Yield Guild Games, Yuga Labs, and OpenSea. The announcement received a warm welcome among the crypto community.
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The new fund will be split into seed investments, which will come to $1.5 billion, and venture investments of up to $3 billion. According to a statement, a16z looks to invest in a broad range of crypto projects in DeFi, Web3 gaming, L1 and L2 infrastructure, plus DAOs and NFT communities. Other areas they could support under the new fund include decentralized social media, storytelling, and privacy.
The news was delivered by a16z founder Chris Dixon, who also said he believed crypto and Web3 to be “the next major computing cycle” that is now entering its “golden era.”
A few days before the announcement of the new fund, a16z published the State of Crypto report, which concludes that the industry was now “in the middle of the fourth ‘price-innovation’ cycle.” The report paints a particularly bullish picture for Web3, noting that Web3 platforms offer creators fairer terms than Web2 giants, and calling the space “tiny but mighty.”
