From "Software Golden Finger" to "Encryption Golden Finger": The Transformation Journey of a Top Venture Capital Firm

Andreessen Horowitz (abbreviated as a16z) was founded in 2009 by Marc Andreessen and Ben Horowitz. This venture capital firm quickly rose to the top ranks of Silicon Valley's venture capital firms due to its successful investments in several well-known internet companies. Currently, a16z manages over $35 billion in assets, with investment areas covering artificial intelligence, biomedical, consumer technology, encryption, enterprise services, and more.

Entering the encryption field

a16z first ventured into the encryption field in 2013, leading a $25 million Series B investment in a well-known cryptocurrency exchange platform, and subsequently made multiple follow-on investments. This bet not only brought substantial returns to a16z but also established it as a leader in the encryption investment sector.

To deepen its involvement in the encryption field, a16z established a dedicated encryption investment fund in 2018. As of now, the fund has completed five rounds of fundraising, managing over $7.6 billion.

• 2018: The first fund was approximately $300 million
• April 2020: The second fund is approximately $515 million
• June 2021: The third fund is approximately $2.2 billion
• May 2022: The fourth fund of approximately $4.5 billion and a $600 million Web3 gaming fund

According to reports, a16z is planning to raise approximately $3.4 billion for its next early and seed-stage fund, primarily targeting emerging fields such as encryption and biotechnology.

Investment Characteristics

1. Adhere to an "all-weather" investment strategy, unaffected by market conditions, and maintain continuous investment.

2. High proportion of lead investments and follow-on investments. Data shows that a16z has cumulatively led 109 rounds in the encryption field, ranking first. For projects they are optimistic about, a16z often makes multiple rounds of follow-on investments.

3. The investment scope is broad, covering various tracks in the encryption industry.

4. Good at media promotion and project packaging. a16z builds its own media channels for marketing and provides comprehensive support for investment projects.

Potential Project Investment

a16z's investment vision in the encryption field is widely recognized. Here are some potential projects (excluding token issuance projects, failed projects, and small financing projects):

1. Yuga Labs: Cumulative financing of $450 million
2. Helium: Cumulative financing of $365 million
3. Aptos: Cumulative financing of $350 million
4. Render Network: Cumulative financing of $306 million
5. Offchain Labs: Cumulative financing of $129 million

Conclusion

a16z's transition from "software golden finger" to "encryption golden finger" aligns with the trends of the times. As stated on its official website, the internet has gone through three eras: the first era (1990-2005) when a16z had not yet been established, the second era (2005-2020) witnessed the rise of a16z. Now, we are in the third era, and a16z is striving to continue its investment legend.