2 years ago
Filings uncover the monolithic magnitude of assets that crypto task funds are managing, Andreessen Horowitz’s (a16z) crypto funds were besides disclosed to beryllium worthy astir $9 billion.
Venture superior (VC) firms focused connected Web3 projects and crypto businesses are accumulating billions of dollars worthy of assets nether absorption arsenic much superior is injected into the sector.
The assets nether absorption fig for Web3 and crypto concern steadfast Paradigm has precocious been revealed. Filings amusement that the steadfast has $13.2 cardinal successful assets, a maturation of 343% compared to the $2.98 cardinal reported successful a filing successful December 2020.
The filings were reviewed by concern writer Eric Newcomer. Writing for his newsletter, helium looked astatine caller applications with the U.S. Securities and Exchange Commission (SEC) for immoderate of the biggest task superior firms successful the Web3 and crypto sectors.
To beryllium registered arsenic an “investment advisor,” these firms indispensable disclose their regulatory assets nether absorption with the SEC.
The applications besides revealed that Andreessen Horowitz's (a16z) crypto-focused funds totaled astir $9 billion. Overall, its full assets nether absorption for each investments topped $54.6 billion.
Sequoia Capital and Tiger Global besides posted immoderate large numbers, with $85.5 cardinal and $124.7 cardinal respectively, Tiger seeing a 58% summation from $79.1 cardinal successful its filings from past year.
The findings travel aft a caller study that venture superior wealth is pouring into crypto. In 2021, $25.2 cardinal worthy of task superior backing went to planetary blockchain startups, a 713% summation from the $3.1 cardinal successful 2020.
Related: Blockchain.com's worth rockets to $14B aft caller backing round: Reports
Expectations could beryllium greater for 2022. In January, a16z revealed that it is gearing up to rise $4.5 billion for its latest money focused connected cryptocurrencies. Venture superior firms are besides keenly looking astatine Solana’s NFT offerings for further opportunities.
The Solana web offers importantly little transaction costs than Ethereum astatine faster speeds, and a fewer Solana-based gaming and NFT companies are seeing large wealth from VCs, according to reports.
Fractal, a Solana NFT gaming marketplace, raised $35 cardinal connected Friday, April 1st, successful a circular led by Paradigm with information from a16z. Magic Eden, a fashionable Solana NFT market, raised $27 cardinal successful a Series A circular successful mid-March, besides led by Paradigm, with different funds coming from Sequoia Capital.
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