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A16z to Boost Size of Its Third Crypto Fund: Report

The fund could lead to $50 million in annual fees, sources told blogger Eric Newcomer.

Updated May 9, 2023, 3:20 a.m. Published May 29, 2021, 12:22 a.m.

Arianna Simpson, now a partner on the a16z crypto investment team, speaks a CoinDesk's Consensus: Invest 2017.

Venture giant Andreessen Horowitz (a16z) is doubling the size of its third crypto fund to $2 billion, according to blogger Eric Newcomer.

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According to a May 27 entry on his website, which covers technology venture funding, the Menlo Park, Calif.-based firm will charge “a 2.5% management fee for most of the first decade of the fund,” which could lead to annual $50 million fees.
The general partners will earn 25% of the profits, also called a carry, until the fund doubles and 30% for performance exceeding that threshold.
VC carries typically range between 15% and 30%, and a16z will not receive a carry if the fund loses money.
In April, the Financial Times reported the firm had created the fund, with sources then saying it was looking to raise between $800 million and $1 billion.
Last month a16z cashed out $449.2 million in Coinbase stock on behalf of its investors when the cryptocurrency exchange made its debut on Nasdaq. The VC was an early investor in Coinbase.
A16z’s has $865.5 million in crypto funds among its total $16.5 billion assets under management.

Venture Capital Andreessen Horowitz Cryptocurrency Fund A16z

James Rubin

James Rubin was CoinDesk's Co-Managing Editor, Markets team based on the West Coast. He has written and edited for the Milken Institute, TheStreet.com and the Economist Intelligence Unit, among other organizations. He is also the co-author of the Urban Cyclist's Survival Guide. He owns a small amount of bitcoin.