a16z is investing in a top NFT marketplace as part of a wider crypto bet

Venture capital firm a16z is backing a startup in the non-fungible token space as it ramps up its deal-making in the cryptocurrency market. 

According to sources familiar with the secretive VC's operations, Andreessen Horowitz is participating in a funding round for OpenSea, which is set to come in at $20 million. In response to an email seeking comment, a spokeswoman for a16z said: "nice try."

OpenSea is among the projects riding the wave in the budding ecosystem for non-fungible tokens or NFTs. This particular subsector includes projects that allow users to purchase and exchange digital collectibles tied to anything from sports to music. Recently, Canadian singer Shawn Mendes issued digital wearables through the platform. 

As The Block Research recently reported, the NFT market as a whole has seen an increase in activity, particularly from artists, celebrities and mainstream companies. Taco Bell's recent foray into NFTs was one recent example of this trend. Most recently, rock band Kings of Leon released its latest album with an NFT component. The NBA and NFT platform NBA Top Shot are selling minted individual Moments from the 2021-2021 season to highlight players chosen for the US Team and the World Team.

This wouldn't be a16z's first investment in the digital collectible market. It also participated in a previous fundraise of Dapper Labs, the startup behind Top Shot as well as CryptoKitties, the Ethereum-based collectibles game.

The NFT-centric investments shouldn't come as a surprise. a16z said last April that it would identify firms "experimenting with things like digital goods that can be traded on secondary markets and transferred between games."

Indeed, a16z's sights aren't just set on digital collectibles.

The firm is also leading a funding round for crypto trading firm Talos, according to sources. The round could come in at about $30 million at a pre-money valuation above $100 million, according to a source. The firm doesn't plan to announce the fundraise for several weeks and the terms of the deal are subject to change. The firm, which emerged from stealth mode in October, offers services to crypto brokers, over-the-counter trading desks and custodians. The firm also counts Autonomous Partners, Castle Island Ventures, and Coinbase Ventures among its backers. Talos is led by former AQR trading technology executive Anton Katz. 

The funding rounds — which have not been previously reported on — happened around the time the firm invested in stablecoin project Fee, which partner Kathryn Haun announced via Twitter. The firm also led Eco's $26 million fundraise, announced last Friday. 

Led by former CoinList president Andy Bromberg, Eco offers a crypto twist on the traditional checking account. 

The fundraises appear to be happening in tandem with a wider hiring spree by the firm, which has adverts on LinkedIn for a wide range of jobs in both crypto and other verticals. Among those ads is a position for a crypto marketing partner, who would lead marketing efforts for its crypto funds. 

"In this role, you’ll build and deploy marketing plans to position Andreessen Horowitz and our general partners as the leading voices in the crypto spaces," the ad reads. 

The firm is seeking to hire a consumer deal partner, clubhouse producer, as well as a corporate development partner for fintech investments. 

Saniya More contributed reporting.