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.

AccessTimeIconMay 29, 2021 at 12:22 a.m. UTC
Updated May 9, 2023 at 3:20 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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

  • 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.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.