Marc Andreessen, co-founder and basic associate at enterprise capital agency Andreessen Horowitz (also called a16z), made a case for crypto and blockchain as essentially the most vital new structure change within the tech trade.
In a Bloomberg Wealth interview with David Rubenstein, Andreessen reframed the phrases of the talk and shifted away from the discuss as as to if 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 completely different sides. They get distracted and carried away and energized about these completely different subjects,” Andreessen quipped. For a16z, nonetheless, essentially the most essential side of the cryptocurrency is that the agency sees it as a elementary structure change within the tech trade, drawing in most 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 software […], but it surely’s solely one in every of many.”
Fairly 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 kind belief relationships in an untrusted atmosphere:
“These are new sorts of computer systems. That is the place it will get very refined. Bitcoin is an web laptop that’s unfold out throughout tons of of 1000’s bodily computer systems all over the world. It’s a transaction processing system that runs with none central location. […] It’s a brand new type of monetary system.”
For all these causes, the VC agency is taking crypto very severely, Andreessen stated. A16z has certainly doubled down on its dedication to blockchain growth in 2021, saying Crypto Fund III — a $2.2-billion enterprise fund co-led by Andreessen Horowitz basic companions Chris Dixon and Katie Haun — in late June of this yr. The fund will put money into 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 non-public token gross sales for Solana Labs this June. Within the months prior, it led the $23-million elevate for nonfungible token market OpenSea in March, a $28-million funding spherical in Aleo in April, and a $40-million elevate for Talos in Might. Again in 2018, a16z was behind Dfinity’s $105-million funding spherical.
Main United States-based crypto alternate Coinbase counts a16z as its largest backer. The VC agency owns shares within the alternate price about $9.7 billion.