Andreessen Horowitz (a16z) will launch a $4.5 billion fund for crypto and blockchain startups, it announced on Wednesday.
The company is betting on finding new opportunities, despite the market downtown.
It said that $1.5 billion out of the fund will be dedicated to seed investments, while $3 billion will go to venture investments.
This fund, dubbed 'Crypto Fund 4,' has been in the works for some time; the Financial Times reported as far back as January that the company was planning a new fund.
General partner Arianna Simpson told CNBC in an interview that “bear markets are often when the best opportunities come about, when people are actually able to focus on building technology rather than getting distracted by short-term price activity.”
The Silicon Valley-based venture capitalist company already has three funds geared towards the industry, the first of which launched four years ago.
Previously known for investments in the likes of Instagram and Slack, the company first entered the crypto space with an investment in Coinbase in 2013. It has since poured money into a range of crypto ventures including Avalanche, OpenSea, Solana and Yuga Labs.
The new announcement brings its total dedicated to crypto and blockchain to over $7.6 billion. Last week a16z also invested in ousted WeWork CEO Adam Neumann’s Flowcarbon, which is aiming to tackle environmental issues through blockchain-based carbon trading tools.
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