a16z will continue to “align” its multi-billion dollar crypto funds with market opportunities, says GP

by Ana Lopez

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Welcome back to Chain reactiona podcast that interviews crypto newsmakers to better understand the technology behind the hype and the people working towards a decentralized future.

For this week’s episode, Jaquelyn interviewed Ariana Simpsongeneral partner at Andreessen Horowitz (commonly known as a16z).

Prior to joining a16z, Arianna founded Autonomous Partners, an investment fund focused on crypto. She also helped launch Crystal Towers Capital, a young investor fund that primarily invests in YC companies.

A16z has dug deep into the crypto space after launching four funds dedicated to the industry. The most recent closed at $4.5 billion in May 2022, and Arianna thinks it’s appropriate given the size of the opportunity.

“I certainly think the ecosystem has gotten so big that it absolutely supports a fund of this size and that’s why we’ve put together a fund of this size,” Simpson said. “We didn’t have to increase any numbers; we chose a number that we thought matched the size of the probability. The ecosystem has obviously grown tremendously and continues to attract tons of early-stage entrepreneurs who are building across the board.”

When asked if there would be a fifth crypto fund from a16z, Simpson said, “I certainly hope so.” She added that a16z “will continue to align our fund sizes with opportunities we see in the market.”

Some of the company’s portfolio companies include major crypto players we’ve interviewed in the past, such as Alchemy, Avalanche, and Aptos.

Over the years, there has been an expansion of investment opportunities “into a whole new world of consumer applications, experiences and products that just weren’t possible because they couldn’t run on blockchains a few years ago, and now they are,” Simpson said. “To me, that’s what’s really exciting is that there’s a whole world of applications out there that consumers can use.”

We talked about Simpson’s background, how her strategy has changed over the years, what she’s looking for in founders, and whether she’d launch another VC firm in the future.

We also discussed:

  • The current investment climate
  • The web3 gaming room
  • Where founders build
  • The regulatory landscape
  • Advice for founders

Chain Reaction comes out every second Thursday at 12pm PT so be sure to subscribe to us apple podcasts, Spotify or your favorite pod platform to stay up to date with the latest web3 and crypto news.

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