Andreessen Horowitz's crypto fund loses 40% value in first half of 2022: Report

Silicon Valley's Andreessen Horowitz's (a16z) flagship crypto fund has reportedly lost around 40% of its value in the first half of this year.

Earlier in May, the firm had raised $4.5 billion, allocating $3 billion to venture investments and dedicating $1.5 billion to seed investments for early-stage crypto startups. In a blog post Chris Dixon, General Partner at a16z, stated that a16z had collectively raised $7.6 billion for crypto and Web3 funds.

However, as reported by The Wall Street Journal, this loss is much larger than the 10% to 20% loss recorded by other venture funds. Previously, the firm had made notable early investments in firms like Facebook, Airbnb, Twitter, Coinbase, and Stripe. It had invested millions in major cryptocurrency projects, including Solana, OpenSea , NEAR, and Uniswap.

According to the report, this year, the firm has made just nine crypto investments in the third quarter of this year—which is lesser than the 26 investments done in the fourth quarter of 2021.

However, due to the prevailing market condition, many investors have been hesitant to invest in De-Fi (decentralised finance) projects. Chris Dixon, on the other hand, is optimistic about the sector, telling WSJ that he remains unperturbed by the downturn in crypto prices.