The venture capital firm Andreessen Horowitz will be investing $1 billion on the virtual currency and blockchain markets. According to the Daily Express, the firm will be turning its investment focus to virtual currencies and distributed ledger technology (DLT).
Andreessen Horowitz Invests In The Crypto Market
The a16z venture capital firm will be improving its presence in the crypto market by increasing its portfolio in virtual currencies. There are several projects that aim at connecting the crypto and traditional financial world, and this is creating excitement among investors from all over the world.
Thus, if this venture capital firm is investing such a large sum of money in the crypto space, there might be something that has a real potential to generate value and evolve in the future.
Andreessen Horowitz commented:
“The things that are deceptive about it is when the new platform at the time is generally worse, in most ways, than the old platform, but has some new capabilities. With crypto, it’s very similar in that it’s worse in most ways than the old computing platform. And it’s slow. It’s really complex. It’s lacking a lot of features. But it has one feature that has never existed before – and that’s trust.”
There are many projects in the market that have the potential to change many different areas in the crypto or blockchain markets. These companies are clearly going to be growing in the future and capturing the attention of large investors as well. According to Coin Rivet, a16z staff across Silicon Valley have to undergo financial checks and declare the virtual currencies they have before the company takes the decision to make an announcement.
The firm was founded by both Marc Andreessen and Ben Horowitz back in 2009 after the financial crisis. This was close to the date of Bitcoin’s creation by Satoshi Nakamoto. The company is currently focusing on early-stage startups related to gaming, e-commerce, mobile, and IT businesses.
After a bear market in which many companies in the space had to build new business strategies and stop operating, these investments are very important for the whole crypto market and firms operating in it.