Which blockchain companies has a16z invested in?

With the rapid development of blockchain, many investors have entered some blockchain startups. a16z can be said to be the first batch of investors to enter the market. a16z is one of the most high-profile venture capital institutions in the world. It has invested in many well-known companies, such as Facebook and Twitter. Today, many of the invested companies have become giants. In the field of blockchain, a16z also has a unique vision, investing in leading companies in the early stages of NFT and DeFi. Let’s take a look at the major blockchain companies that a16z has invested in today.

The brilliant record of a16z

 Andreessen Horowitz, also known as a16z, is an American private venture capital firm founded in 2009 by Marc Andreessen and Ben Horowitz. a16z is headquartered in Menlo Park, California.

a16z invests primarily in early stage start-ups and established growth companies in industries such as mobile communications, Crypto, gaming, social, e-commerce, education and enterprise IT (including cloud computing, security and software-as-a-service).

Between 2006 and 2010, Marc Andreessen and Ben Horowitz actively invested in technology companies. They each invested $4 million in 45 startups, including Twitter. During this period, the two became known as super angel investors.On July 6, 2009, Andreessen and Horowitz launched their venture capital fund with an initial capital of $300 million. In November 2010, at a time when the venture capital field was shrinking, the firm raised another $650 million for a second venture fund. In less than two years, the company has managed a combined $1.2 billion through the two funds. As of August 2021, the company had $18.8 billion in assets under management.

In 2009, a16z made two investments. One is in Apptio, a developer of enterprise management SaaS, and the other is in Skype (a Tencent conference-like software). After Skype was sold to Microsoft for $8.5 billion in May 2011, a16z sees the investment as a success.

In 2010, A16z led a Series A funding round with a $10 million investment in cloud company Okta. In 2011, A16z invested $80 million in Twitter, becoming the first venture capital firm to hold stock in all four of the then most highly valued private social media companies (Facebook, Groupon, Twitter and Zynga). A16z has also invested in Airbnb, Lytro, Jawbone, Belly, Foursquare, Stripe and other high-tech companies.

In 2012, A16z invested in 66 new start-ups. Much of it through its funding of Y Combinator’s Start Fund. For example, it invested $100 million in GitHub, and when GitHub was acquired by Microsoft for $7.5 billion, A16z netted more than $1 billion. In 2013, A16z invested in companies such as Clinkle, Coinbase, Databricks, Lyft, Oculus VR, PagerDuty, Pixlee, Ripple, Soylent, Swiftype, and uBiome.

In 2014, A16z led a $57 million Series B round in A/B testing startup Optimizely. That same year, A16z invested $90 million in more companies, including Tanium, BuzzFeed, and Forward Networks. In 2015, the company invested $40 million in Stack Exchange, $2.8 million in Distelli, and $80 million in cloud-based CAD software company Onshape. Also in 2015, A16z invested in blogging platform Medium, Samsara, Improbable, Honor, Inc., OpenBazaar, biotech startup Nootrobox.

In 2016, A16z led an $8.1 million Series A round in legal tech firm Everlaw and a $3.5 million seed round in RapidAPI, an API connectivity platform for developers. Also in 2016, the company invested $2 million in digital health company Cardiogram and food science company Apeel Sciences. In 2017, the company invested in Sigma, Health IQ, Asimov and Cadre.

In 2018, A16z raised $300 million for its Crypto fund (a16z Crypto Investments). The Crypto Fund has invested in Imply, Smartcar, PeerStreet, CryptoKitties, Dfinity, Earnin, Pindrop, Tenfold and Very Good Security. In 2019, A16z raised $15.3 million in Series A funding to Substack, some of which was used to bring well-known authors to the network. In June 2019, the company invested $9.2 million in Series A funding in experiential marketing platform AnyRoad.

In 2020, A16z led a $150 million Series G round in Roblox (now Metaverse’s first stake). In April 2020, the company led a $50 million Series D round in the vector graphics editor and prototyping tool Figma. In April 2020, A16z raised $515 million for a second Crypto-focused fund (Crypto Fund II). In May 2020, the company raised a $12 million Series A funding round for Clubhouse.

In January 2021, the company led a $100 million Series B round for Clubhouse at a valuation of $1 billion at the time. In April 2021, it led a $220 million Series D round for mobile banking and fintech company Current. In July 2021, the company raised a $100 million Series A for NFT market leader OpenSea at a valuation of $1.5 billion at the time. In September 2021, the company led an $18 million Series A round in medical technology company Pearl Health. In October 2021, A16z raised a $150 million Series B round at Sky Mavis at a $3 billion valuation. In October 2021, a16z also raised a $250 million Series C round for Alchemy.

Which blockchain companies has a16z invested in?

Some blockchain companies invested by a16z

Source: a16z official website

Invest in America’s Largest Crypto Exchange

Coinbase Global, Inc, is an American company that operates the Crypto trading platform. Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam, and as of March 2021, it is the largest Crypto exchange in the US by volume. On April 14, 2021, Coinbase listed on the Nasdaq exchange through a direct listing.

Coinbase was founded in June 2012 by former Airbnb engineer Brian Armstrong. Armstrong joined the Y Combinator startup incubator program and received a $150,000 cash infusion. Fred Ehrsam, a former Goldman Sachs trader who later joined as a co-founder. In October 2012, the company launched a service to buy and sell bitcoin via bank transfers.

In May 2013, Coinbase received a $5 million Series A investment led by Fred Wilson from venture capital firm Union Square Ventures. In December of the same year, Coinbase secured $25 million in investment from venture capital firms A16z, Union Square Ventures, and Ribbit Capital. In January 2015, the company received a $75 million investment led by Draper Fisher Jurvetson, the New York Stock Exchange, USAA and several banks.

In late February 2021, Coinbase filed for a direct listing with the SEC. In April 2021, with the release of final earnings ahead of a direct listing on April 14, Coinbase reported a nine-fold increase in first-quarter revenue to $1.8 billion, up from $190.6 million last year. The uptick is attributed to the rise in Bitcoin price over the period. Before going public, the Nasdaq set a reference price of $250.00 per share, valuing the company at $47 billion. At the end of the first day of trading, Coinbase closed at $328.28 per share. Today’s market cap is $40 billion.

Which blockchain companies has a16z invested in?

Coinbase stock price trend

Yahoo Finance has reported that a16z has made more than $7 billion in returns from Coinbase.

Invest in the first giant in the DeFi field

Decentralized finance (DeFi) provides financial instruments by using smart contracts on the blockchain without relying on intermediaries such as brokers, exchanges or banks. DeFi platforms allow people to lend or borrow money from others, use derivatives to speculate on price movements of assets, trade cryptocurrencies, insure risks, and earn interest in savings-like accounts. DeFi uses a layered architecture and highly composable building blocks. Some applications can give high-interest-rate returns, but come with high risk. As of October 2021, assets used in decentralized finance are worth $100 billion.

Which blockchain companies has a16z invested in?

Exchange rankings for DeFi

Source: Coin Market Cap website

dYdX (DYDX) is a decentralized trading platform for Crypto margin trading of BTC, ETH, SOL, DOT and other assets. The majority of dYdX crypto margin trading products reside on the Ethereum blockchain. The main business of dYdX Crypto Exchange is to provide advanced derivative products. The Crypto derivatives market is huge. For example, Binance, the world’s largest centralized Crypto exchange, has a daily derivatives trading volume of $50 billion. If users do not want to trade on a centralized exchange, then they can choose the dYdX Crypto exchange.

dYdX was founded in 2017 by former Coinbase engineer Antonio Juliano. In December 2017 and October 2018, dYdX received two seed rounds of $2 million and $10 million, respectively, led by institutions such as A16Z and Polychain Capital.

Which blockchain companies has a16z invested in?

Investors in dYdX

Source: dYdX official website

Today, dYdX has also added lending services to diversify its business. dYdX also provides services for encrypted perpetual contracts. A crypto perpetual contract is a derivative transaction, similar to trading products such as BTC futures. The way Bitcoin futures contracts work is that buyers and sellers agree to trade BTC at a specific price on one date. If the BTC is above the agreed price when that date comes, the buyer wins and the seller loses.

Crypto perpetual contracts are similar except that there is no fixed date specified for the exchange. In other words, you can hold perpetual contracts indefinitely. The main advantage of trading perpetual contracts over futures is that if the trade is unfavorable to the holder, the holder will not fall into a loss (loss on the paper, no loss if the position is not closed).Instead, holders can continue to hold the contract by funding the contract, and they can close their positions whenever they want.

According to the Coinmarketcap website, the market value of dYdX today is about $4.7 billion. This investment of dYdX has allowed A16Z to obtain dozens of times or even a hundred times the rate of return.

Which blockchain companies has a16z invested in?

dYdX information

Source: Coinmarketcap website

Invest in the second largest exchange in the DeFi space

Uniswap is a decentralized Crypto exchange, and Uniswap is also the name of the company that originally built the Uniswap network platform. The Uniswap network platform facilitates automated trading between Crypto tokens on the Ethereum blockchain through the use of smart contracts, in stark contrast to Crypto exchanges run by centralized companies.

Uniswap was created on November 2, 2018 by Hayden Adams, a former mechanical engineer at Siemens. Uniswap has received investment from venture capital firms including A16z, Paradigm Venture Capital, Union Square Ventures LLC and ParaFi. According to data from Coinmarketcap, in February 2022, the average daily trading volume on Uniswap was $2 billion.

The first version (V1) of the Uniswap platform was released in November 2018 and introduced the concept of AMM (Automated Market Maker). The second edition was launched in May 2020 and the third edition in May 2021.

Compared to centralized exchanges, Uniswap uses liquidity pools instead of market makers, aiming to create a more efficient market. Liquidity providers provide liquidity to exchanges by adding a pair of tokens to a smart contract that can be bought and sold by other users. In return, the liquidity provider will receive a percentage of the trading fees earned by that trading pair. For each transaction, a certain number of tokens are removed from the pool in exchange for the number of other tokens, thereby changing the price. There are no fees for listing tokens, access to a large number of Ethereum tokens is allowed, and users do not need to register. As open source software, Uniswap’s code can also be forked to create new exchanges.

NFT transaction leader, Opensea

OpenSea is an online marketplace for NFTs. Opensea was founded by Devin Finzer and Alex Atallah on December 20, 2017 in New York. Users can generate NFTs for free on OpenSea and offer them to direct buyers or auctions. OpenSea is mainly based on the Ethereum ERC-721 standard and Polygon (a second layer scaling solution for Ethereum).

OpenSea went through Y Combinator’s seed round in 2018. In November 2019, OpenSea raised $2.1 million in venture capital (primarily from Animoca Brands). In March 2021, OpenSea raised another $23 million in venture capital (primarily from A16z Capital). In July 2021, OpenSea announced another $100 million funding round, in which A16z also participated.

OpenSea had $95 million in revenue in February 2021, $147 million in March, and $2.75 billion in September. In September 2021, OpenSea released its own mobile apps for Android and iOS. In January 2022, OpenSea raised a $300 million funding round (led by Paradigm and Coatue Management) at a valuation of $13.3 billion.

OpenSea co-founder and CEO Devin Finzer said the newly raised funds will be used to improve customer support and security, invest in the wider NFT and web3 community, as well as recruiting and product development. OpenSea is committed to expanding the entire NFT ecosystem. OpenSea will launch a grants program with an opportunity to directly support the developers, builders and creators shaping the future of NFTs. OpenSea’s goal is to facilitate the scale and growth of the wider NFT ecosystem, including raising the profile of emerging creators and investing in the people who shape the NFT space for the better.

Additionally, the funds raised will help OpenSea fend off new competitors in the NFT market. For example, Coinbase is preparing to launch its own NFT marketplace; FTX has an NFT marketplace up and running.

Opensea’s fundraising has also set out four areas for future efforts, namely, accelerating product development, significantly improving customer experience and customer asset security, investing in the wider NFT and Web3 project community, and growing the team.

The first is to accelerate the development of related products. In the future, Opensea will focus on continuing to abstract the functions of blockchain complexity and simplify the process to lower the entry barrier for NFTs. In addition, Opensea will also accelerate the development of functions to support other blockchains in the future. They will also continue to develop better tools to help people analyze, demonstrate, manage and showcase their NFTs.

The second is to significantly improve the customer experience and the safety of customers’ assets. With the price of NFT assets skyrocketing, how to prevent hackers has become a problem. Opensea revealed that it will actively develop the trustworthiness, security and stability of the platform in the future, and relevant teams will continue to recruit to ensure the security of customers’ assets.

The last step is to make related investments. Opensea will launch plans in the future to directly support developers, builders and creators who shape the future of the NFT space, and ultimately make the entire NFT ecosystem more complete.

In July 2021, a16z raised a $100 million Series A for OpenSea at a valuation of $1.5 billion at the time. Today, OpenSea’s valuation is at $13.3 billion, and a16z’s investment has doubled by 8.8 times.

Alchemy, the infrastructure of the blockchain

Alchemy is a developer platform in the blockchain space. Alchemy takes care of building the infrastructure part of the blockchain, and developers can focus their time on creating great products. Alchemy builds custom technologies and tools to create a powerful platform that developers use to make their blockchain projects work. The top companies in Web3 are built on Alchemy, such as OpenSea, Dapper Labs, Adobe, Axie Infinity, and others. Almost every NFT marketplace, most DeFi organizations, and 70% of leading Web3 dapps (decentralized software) are built on the Alchemy platform.

Which blockchain companies has a16z invested in?

Part of the platform built on the Alchemy platform

Source: Alchemy official website

In October 2021, Alchemy completed a $250 million financing at a valuation of $3.5 billion, of which a16z led the investment.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/which-blockchain-companies-has-a16z-invested-in/
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.

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