Today, we will take a deeper look at A16z, the top stream that is known as the “investment weathervane” and the “benchmark of the cryptocurrency circle”.
“They are like crazy people, they have a foot in every deal”.
A16z’s full name is Andreessen Horowitz, taken from the last names of its two founders. Founded in 2009 by Marc Andreessen and Ben Horowitz, the firm is a Silicon Valley, California-based venture capital firm whose motto is “supporting bold entrepreneurs to build the future through technology”. a16z is rapidly expanding its footprint with a rampant style, from Facebook, Twitter From Facebook, Twitter, GitHub, and Clubhouse, a16z has become one of the top venture capital firms in Silicon Valley, as it has bet on a series of companies that will become giants or phenomenal products in the future. It is one of the brightest stars in the entire Internet investment community, ranking third in the US after Sequoia and Accel Partner.
A16z has nearly $1.66 billion in assets under management across multiple funds, including the $1.4 billion Bio Fund.
It is fair to say that A16z itself has been a chicken soup of sorts in the investment community for over a decade.
An eye for the future
Anderson, one of the founders, is known as the “Igniter of the Internet” because Anderson was one of the first to develop the explorer software when he was just a college student who hadn’t graduated.
This man with extraordinary computer skills was destined to have an extraordinary life – although he was born in a typical Midwestern prairie town, New Lisbon, which seemed to have nothing to do with computers, a place where people were passionate about football, Anderson seemed to be an anomaly, he started to touch computers at the age of 9, and taught himself the Basic language in the library.
And then came the story – one day in March 1994, Anderson was sitting at his computer as usual when he received an email from a strange old man – an email in which veteran venture capitalist Jim Clark offered him an olive branch.
Naturally, Mark Anderson was overjoyed, knowing that he was a recent college graduate.
In April 1994, the two men teamed up to create Mosaic Communications (the predecessor of Netscape), with Clark investing $4 million and Anderson and his partner in charge of the technology and developing the web browser.
On August 9, 1995, 16 months after the company was founded, Mosaic Communications successfully went public, with a market value of $3 billion at one point. On that day, its stock price soared all the way after the opening, reaching a peak of $71, and within two hours, 5 million shares were snapped up, and finally, Netscape closed at $58.25 per share.
Anderson, the golden boy of Silicon Valley, became rich overnight and became an entrepreneurial myth. In the eyes of many people, he was not only a technical person, but he was also an entrepreneurial genius, for example, he did not have any entrepreneurial experience and work experience, but when managing Netscape, he was full of business strategies, including marketing, positioning and finding the best way to win Netscape.
Later on, although Netscape eventually failed to compete with Microsoft and was forced to sell to AOL (America Online), their legacy of JAVA, SSL, and cookie technology is now the standard for the entire industry. In a sense, Anderson is the “Cangjie” of the Internet, creating many of the basic languages.
After the sale, however, Anderson was named chief technology officer of America Online in the terms of the deal, but Anderson was born to start a business, so he chose to leave and turn to venture capital in 2009, co-founding A16z with another founder, Horowitz.
But by 2019, a16z had a turning point – the
The four most high-profile companies in its portfolio saw their share prices plummet after going public. a16z had made a handsome return, but it meant that the mobile Internet windfall had passed, after all. So a16z began a transition to find new areas that would meet the needs of the coming decades.
Breaking into the cryptocurrency market
Back in 2014, I believe the vast majority of people had not yet entered the cryptocurrency world at this time. While Bitcoin was still in the midst of a stormy debate, A16z made an unprecedented investment of $25 million. Yes, no one knew what Bitcoin was at the time, was it a currency or a financial asset, or was it an outright scam?
But for Anderson, a programmer by trade, it was as if he was seeing the past. How is this scene ever not similar? When the Internet came along, everyone thought it was a technology for scientists and engineers only. Everyone said the Internet was a fraud, a hiding place for unreliable people, and when the Internet bubble burst, so-called engineers and Internet experts couldn’t walk with their heads up outside of Silicon Valley.
It was Anderson’s browser that brought the Internet into millions of homes, and the Internet proved to be a world-changing wave after the fact. Logic is all about evolution, and that’s why Anderson dared to invest in Coinbase before anyone else. Yeah, why not? See the logic, then do it! In 2015, Coinbase’s Series C valuation has been as high as $1 billion, and a rough estimate is that Andreessen Horowitz has floated more than $100 million.
Among the top streams of cryptocurrencies
In June 2018, A16z set up a $300 million cryptocurrency fund, A16z Crypto Fund, which, as the name suggests, specializes in blockchain.
In the cryptocurrency market that year, the cryptocurrency price continued to fall, and the “bear market” became the consensus of many people.
However, for A16z, there was no such thing as winter or summer. Because they call themselves an “all-weather” fund: “We will keep investing over time. If there is another ‘crypto winter’, we will continue to invest aggressively.”
In just three years, from ’18 to this year, a16z has strategically invested in 33 blockchain ventures, including Coinbase, Uniswap, Solana, Maker Dao, Dfinity, Chia and others that we know of, most of which have grown into giants in various sectors of the crypto market.
If a16z’s investment logic was that “software is eating the world”, now they want to eat the crypto world. And in 2021, a16z’s investments are even more aggressive.
Long-term cryptocurrency holdings
It’s worth noting that while a16z’s investments seem aggressive, they have never sold any of their investments and plan to hold them for more than 10 years. On the contrary, for domestic crypto investment institutions, 1 year investment + 1 year exit is already considered conscience…
Looking back at how far facebook has come, A16z is to be credited – when Yahoo was ready to buy facebook with $1 billion, the rest of the investors were eager to realize, while A16z told 22-year-old Zuckerberg to insist that the shares taken were not high, yet they persisted until the end, encouraging Zuckerberg all the way and helping him out, and finally, A16z got a return of more than $100 million.
So what the future holds for A16z now that they insist on holding cryptocurrencies, we’ll see!
Current A16z portfolio.
A16z is a name that can’t be beaten in the VC-heavy Dune Road. Today, it has become the top VC in the cryptocurrency space, with a portfolio that deserves the attention of the market and the scrutiny of investors, and the title of “weathervane” is not overstated!
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/vernacular-in-depth-explanation-of-cryptocurrency-circle-wind-vane-a16z/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.