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.

Coins-1726618_1280_copy

(Source: »

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.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Get Ready for a Jaw-Dropping 90% Asset Return by Q2 2024 FTX Customers in for a Thrilling Ride with New Amended Proposal!

Exciting news for customers of defunct cryptocurrency exchanges FTX and FTX.US - an updated proposal offers hope of r...

Blockchain

"Gemini" Risk Control Interview: How the Traditional Financial Regulatory Framework Maps to the Crypto Industry

Source: Yahoo Fiance Original author: Daniel Kuhn Translator: Moni Source: Odaily Planet Daily Monero’s Community Cro...

Blockchain

Exchanges are temporarily withdrawing cash, data is garbled, or the Amazon server failure in Tokyo

According to Yahoo Japan, the Amazon Web service failed at around 13:00 on August 23, 2019. The service that failed w...

Market

Layout for many years but little known? Exploring the full picture and opportunities of the Japanese Web3 encryption market

What is the current situation of the Japanese cryptocurrency market? Who are the key participants? How can one partic...

Blockchain

Babbitt Column | Money Money Risk Avoidance Guide for Digital Currency Trading Subjects

The anonymity and complexity of digital currency trading make trading participants and trading platforms face many ri...

Blockchain

Hilariously Hot Crypto Drama: FTX and Genesis Global Trading Settle for a Cool $175 Million

Bankruptcy Court Approves $175 Million Settlement between Cryptocurrency Companies FTX and Genesis in New York