Former a16z GP Katie Haun raises $1.5B Web3 fund, the largest debut fund by a female VC

Haun Ventures' record $1.5 billion fundraise for its initial venture capital fund focussed on Web 3 startups has shattered the record for a debut fund by a female VC.

Former investment banker Mary Meeker had a record with $1.3 billion raised for the BOND fund in 2019.

“It feels, honestly, like a lot of pressure. But I think that motivates everyone on the team,” Founder Kathryn "Katie" Haun told CNBC, “Web3 is the new era of the internet, and it deserves a new era of investors.”

Web 3, or Web 3.0, refers to startups and companies built with blockchain technology. The focus of these startups is not limited as in other thematic funds, but rather is focussed on the ability to scale their business using the new opportunities provided by this tech.

Blockchain entities include Bitcoin, NFTs, decentralised gaming, decentralised finance, and much more.

Kathryn said that her new fund will invest in both the equity behind many of these companies, and the public cryptocurrencies some of them may issue.

These cryptocurrencies are also referred to as coins or tokens.

“There’s still a tonne of potential in crypto and Web 3 equity business models, but also token business models,” she said, "I don’t think that you can really be a crypto investor without holding tokens.” 

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Haun Ventures' mammoth $1.5 billion will be split between early-stage ventures with $500 million capital and $1 billion for growth-stage ventures.

• Haun Ventures' investment board comprises executives from a16z, Coinbase, Airbnb, Shopify, and Jigsaw. In fact, actor and writer Mindy Kaling also joined as an advisor. The crypto-focused VC firm has also confirmed investments in Autograph, OpenSea, Aptos, and Moonwell.

• Haun Ventures intends to become a registered investment advisor (RIA), which would eliminate restrictions on the percentage of the company's capital to be used to buy tokens.

• Most of the team members of the Haun Ventures team have worked briefly with a16z, including marketing chief Rachael Horwitz, global policy head Tomicah Tillemann, and communications lead Nicholas Pacilio.

• Katie Haun previously worked as a federal prosecutor and Haun's investigations into white-collar crimes led her to investigate Bitcoin-related crimes. Later in the year 2018, Haun joined Andreessen Horowitz as the firm's first female general partner. She co-led the firm's several cryptocurrency funds alongside Chris Dixon.

• In the month of December 2021, Haun announced her exit from a16z. As per the reports, Andreessen Horowitz, Marc Andreessen, and Dixon invested individually in Haun Ventures.

The most active funds in terms of the number of investments in blockchain companies are Andreessen Horowitz, IDG Capital, and Accel. As per the data, VC funding on blockchain reached an all-time high in the year 2021, with $25.2 billion invested in blockchain startups.