Venture Capital Fund A16z has transformed: it will provide financial support for cryptocurrency startups up to $1 billion
According to foreign media reports, the Anderson-Horowitz Fund (A16z) can now support cryptocurrency startups with up to $1 billion in funding after some recent internal adjustments.
The company's founders, Marc Andreessen and Ben Horowitz, told Forbes that they have registered all 150 employees as financial advisors to allow them to make bigger The bet and increase investment in high-risk asset classes such as cryptocurrency.
For this reason, the A16z is transforming from a traditional venture capital firm to a financial advisory firm with 150 employees.
According to Forbes, the company can now invest up to $1 billion in riskier investments such as cryptocurrency or other digital assets. According to the current regulations of the US Securities and Exchange Commission (SEC), the company can also "unlimited purchase of shares of listed companies or other investors."
As a venture capital firm, the Anderson Horowitz Fund (A16z) will not be able to make such large-scale investments on these riskier assets due to regulatory requirements. Specifically, under the US Securities and Exchange Commission (SEC), venture capital funds invest in “high-risk” assets that cannot exceed 20% of their fund size. According to Forbes, this includes secondary stock trading.
This transformation of the A16z was completed in March this year, which required the company to hire some new compliance officers and audit each employee.
However, Katie Huan, the company's general partner and co-head of the cryptocurrency special fund, said in an interview with Forbes that the change also brought some benefits, including the company partners can cooperate in the transaction. According to the report, this allows them to bring together expertise.
The company has invested heavily in cryptocurrency. So far, it has supported the cryptocurrency exchange Coinbase, the stable currency developer TrustToken, the cloud computing platform Oasis Labs and other startups. Recently, it launched its own cryptocurrency-specific fund, which is over $300 million.
CoinDesk contacted a spokesperson for the Anderson-Horowitz Fund on Tuesday, but declined to comment.