A16z is raising as much as $1 billion for a new crypto fund

Venture capital firm Andreessen Horowitz (a16z) is setting up a new fund to invest as much as $1 billion in crypto and crypto start-ups, according to a report from the Financial Times. 

A16z is looking to raise between $800 million and $1 billion for the fund, which will be its third and largest crypto-focused fund. Recently, the firm has invested in zero-knowledge private applications platform Aleo. 

The firm found early success by investing in Coinbase and Ripple through its traditional funds. It later created a dedicated crypto fund in 2018, and by 2019 it had amassed a portfolio of crypto firms that would become some of the highest-valued companies in the space, in addition to other early bets on tech firms like Skype, Facebook, Twitter and Airbnb. A16z established a second crypto fund last year. 

If a16z raises the $1 billion, this would make it one of the highest-funded investment pools dedicated to crypto. Paradigm previously raised $1 billion for crypto investments.