Search ForexCrunch

Andreessen Horowitz who is best known for his investments in social media companies is looking to raise another USD 450 million for his second cryptocurrency investment fund. 

Andreessen was said to be one of the first venture firms with a sizable fund dedicated to cryptocurrencies, raising around USD 350 million in 2018 for start-ups working on the blockchain technology underpinning cryptocurrencies.

It seems Mr Horowitz is trying to do this at a very ambitious time when global stock markets have suffered due to the COVID-19 pandemic. It has been said the thinking behind the idea is a move away from more traditional investments that are struggling. 

Andreessen Horowitz has a good pedigree in the investing industry after becoming an early investor in Coinbase, Facebook and Twitter. His venture capital firm registered as a regulated financial advisor last year and is looking to expand on its operations with this new fund. Seems it be good news for the industry as successful players think that the crypto market has largely weathered the coronavirus storm. 

One issue could be the fact that Bitcoin had developed a perceived safe haven tag before the aforementioned pandemic and it failed to deliver. Bitcoin fell just as much like many other assets during the scramble for cash that ensued following the start of the pandemic. Funds like these are only as good as the investments they make and Horowitz has had some good form.