Marc Andreessen, co-founder and normal companion at enterprise capital agency Andreessen Horowitz (often known as a16z), made a case for crypto and blockchain as essentially the most important new structure change within the tech business.
In a Bloomberg Wealth interview with David Rubenstein, Andreessen reframed the phrases of the controversy and shifted away from the speak as as to whether Bitcoin (BTC) — and crypto extra broadly — is or shouldn’t be an endurable funding proposition.
“Crypto is a bit just like the parable of the blind males and the elephant. Folks contact it from totally different sides. They get distracted and carried away and energized about these totally different subjects,” Andreessen quipped. For a16z, nevertheless, essentially the most essential facet of the cryptocurrency is that the agency sees it as a elementary structure change within the tech business, drawing in lots of the smartest minds in laptop science.
“We view it [crypto] as a technological transformation. There’s a elementary technological breakthrough that has occurred. It’s an space of laptop science known as distributed consensus […] Cash is one utility […], however it’s solely one in all many.”
Relatively than specializing in Bitcoin as an asset, Andreessen underscored the blockchain’s capability to allow interactions between actors and software program on the web to type belief relationships in an untrusted setting:
“These are new sorts of computer systems. That is the place it will get very delicate. Bitcoin is an web laptop that’s unfold out throughout a whole lot of 1000’s bodily computer systems around the globe. It’s a transaction processing system that runs with none central location. […] It’s a brand new form of monetary system.”
For all these causes, the VC agency is taking crypto very severely, Andreessen mentioned. A16z has certainly doubled down on its dedication to blockchain growth in 2021, asserting Crypto Fund III — a $2.2-billion venture fund co-led by Andreessen Horowitz normal companions Chris Dixon and Katie Haun — in late June of this yr. The fund will spend money on blockchain initiatives at any growth part, “from early seed-stage initiatives to totally developed later-stage networks.”
A16z has led quite a few necessary raises within the blockchain area, together with the $314-million private token sales for Solana Labs this June. Within the months prior, it led the $23-million raise for nonfungible token marketplace OpenSea in March, a $28-million investment round in Aleo in April, and a $40-million raise for Talos in Could. Again in 2018, a16z was behind Dfinity’s $105-million funding spherical.
Main United States-based crypto trade Coinbase counts a16z as its largest backer. The VC agency owns shares within the trade price about $9.7 billion.