a16z to Boost Size of Its Third Crypto Fund: Report

a16z to Boost Size of Its Third Crypto Fund: Report

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-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 that the Menlo Park-based firm had created the fund, with sources then saying that 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. a16z was an early investor in COIN.
  • a16z’s has $865.5 million in crypto funds among its total $16.5 billion assets under management.
  • Source