University of Michigan’s $12 Billion Financial Fund Backs Andreessen Horowitz’s Crypto Network Fund

Public Ivy League school, University of Michigan (UM) had announced that their $12 billion endowment plans to add money to a crypto venture capital fund managed by Andreessen Horowitz. This was announced in the agenda for the university’s Board of Regents meeting on Feb. 21.

The endowment had already committed $3 million to CNK Fund in June 2018 and has now included it as an approved partnership for a follow-on investment, amount unspecified.

The announcement says:

“First, crypto has become an important area of innovation and entrepreneurship that warrants focused attention. As opportunities related to crypto networks transition from being undefined to becoming more visible and sharply defined, the·need for a separate thematic fund may recede. In addition, the regulatory landscape for crypto-based investments is potentially more cumbersome than is the case with the sort of traditional IT investments that otherwise characterizes AH's activities. Finally, crypto is currently regarded as a distinct type of technology by entrepreneurs, funding sources, and developers. By creating a separate fund, AH hopes to be better positioned within this community that would be the case by continuing to invest through its generalist IT funds.”

In October 2018, Yale University decided to get involved with a fund called Paradigm. The crypto-focused fund accumulated $400m in funding. Though Yale was a part of the contribution, reports do not show exactly how much of that allotment was due to Yale’s participation. The project was started by the former executives of several major companies – Fred Ehrsam (Coinbase), Matt Huang (Sequoia Capital), and Charles Noyes (Pantera Capital).