Startups

Andreessen Horowitz Discusses Raising Third Crypto Fund to $2 Billion, Sources Say

31/05/2021 by Idelto Editor

In May 2020, back when the crypto economy was still tumultuous from the coronavirus outbreak fears and gloomy global financial outlook, in general, the private venture capital firm Andreessen Horowitz (a16z) revealed the 500 million-dollar “Crypto Fund II.” A report published on May 27 by the tech writer Eric Newcomer indicates that Andreessen Horowitz is contemplating $2 billion in financing for the next crypto fund.

Former Bloomberg Reporter Says ‘a16z in the Process of Tripling Down on Crypto’

The well known venture capital firm Andreessen Horowitz founded by Marc Andreessen and Ben Horowitz back in 2009 has been a driving force in the crypto industry in regard to financing projects and startups. Marc Andreessen has been a firm believer in bitcoin for quite some time now and a16z has funneled millions of dollars into the industry during the last eight years.

In recent times, Andreessen Horowitz launched two funds dedicated to the development of “crypto networks and businesses.” Bitcoin.com News reported on the last venture revealed by the a16z executives Katie Haun and Chris Dixon when the two revealed the Crypto Fund II.

That specific fund invested $515 million into networks, startups, and businesses dedicated to the blockchain and crypto asset industry. Now the former tech writer for Bloomberg, Eric Newcomer, details that a16z third crypto fund is “in talks to raise $2 billion.”

“Andreessen Horowitz is in the process of tripling down on crypto, raising its third crypto fund since 2018,” Newcomer said. “Sources tell me that Andreessen Horowitz is targeting $2 billion for its third crypto fund. That’s double the size of what many people are expecting,” he added.

Someone Familiar With the Matter Told Newcomer a16z Sold ‘at Least Some of Its Ethereum Holdings’ Before the Market Downturn

Newcomer’s source also disclosed that Andreessen Horowitz has “distributed at least some of the Coinbase shares soon after Coinbase went public.” Moreover, the firm had ethereum (ETH) holdings and a source familiar with a16z’s operations said “the firm sold at least some of its Ethereum holdings at around $3,800 before the price crashed.”

The report further added that there seems to be an “arms race” in cryptocurrency investments as Fred Ehrsam and Matt Huang’s Paradigm have been making waves. “The Andreessen fund and Paradigm have frenemy status. I hear that some Andreessen Horowitz partners are limited partners in Paradigm,” the author’s report details.

On the same day, a16z revealed an investment into the crypto firm Talos, Newcomer also said he hears “a lot of buzz about investment Uniswap.” Of course, similar to Bloomberg’s reporting, Newcomer’s source is someone familiar with the matter.

“It will be just as interesting to see who dives into crypto as it will be to see who decides to sit this goldrush out. But Andreessen Horowitz looks like it will be well positioned to fund the next Coinbase,” Newcomer concluded.

What do you think about Andreessen Horowitz tripling its crypto fund to $2 billion? Let us know what you think about this subject in the comments section below.

Restrictions on Crypto Trading to Deprive Nation of Opportunities, Iranian Fintechs Warn

18/05/2021 by Idelto Editor

Startups have spoken out against government attempts to curb the operations of crypto exchanges in Iran. Cryptocurrency trading is not illegal, Iranian fintechs insist, calling on lawmakers and regulators to develop rules that would allow the sanctioned country to continue to take advantage of decentralized money transfers.

Iranian Fintechs Insist There Is No Ban on Cryptocurrency Trade

Recent statements by various authorities in Teheran have prompted a response from the Iran Fintech Association (IFA) which represents companies working in the sector. In a letter to the speaker of parliament, Mohammad Baqer Qalibaf, and the head of the central bank, Abdolnasser Hemmati, the independent industry body stated:

Resorting to restrictive measures is the simplest, but not the best response to the issue. Doing so would deprive the nation of potential opportunities and create grounds for underground business.

Amid growing interest in cryptocurrencies, the Central Bank of Iran (CBI) issued a warning earlier this month against unrestrained crypto trading and reminded Iranians about the ban on transacting with coins minted outside the Islamic Republic. Then the Majlis leadership called on financial regulators to adopt a cautious approach to dealing with the controversial aspects of the matter.

“There are no regulations per se barring the work of crypto exchanges,” IFA now says, quoted by the Financial Tribune. “Government regulations only ban using cryptocurrencies for purchasing goods and services. It is explicit that trading cryptos is not illegal though traders are accountable for the ensuing risks,” the organization emphasizes in its address to government institutions.

Businesses Bypass Economic Blockade Using Cryptocurrencies

In March, the CBI ordered Iran’s domestic payment settlement network, Shaparak, to block online payment gateways owned by coin trading websites. Last week, Abdolnasser Hemmati said that crypto trade will be limited only to selected exchanges processing cryptocurrency transactions for commercial purposes. Iranian lawmakers, however, are not satisfied with merely a ban on crypto trading and have urged the central bank to develop precise rules.

The IFA agrees and says that “all the decision-making bodies need to pool minds to develop regulations that are comprehensive and efficient.” It proposes the establishment of special working groups including representatives of the industry that will be tasked to examine the complicated issue, in all its dimensions, in order to avoid repeating mistakes from the past.

IFA also points out that businesses have benefited from the use of cryptocurrency in their international transactions. Iranian companies have managed to bypass the economic blockade imposed by the U.S., circumventing restrictions on various industries, banking, shipping, and insurance services. “Several businesses have either used the technology for meeting their needs or have invested in cryptocurrencies without any particular risk,” emphasized the trade association.

Where do you stand on the debate over crypto regulations in Iran? Let us know in the comments section below.

Crypto-Centric VC Fund Lures in Billionaire Investor Paul Tudor Jones and Rapper LL Cool J

04/02/2021 by Idelto Editor

This week the former Digital Currency Group (DCG) Vice President of Investments, Travis Scher, announced a $72 million crypto-focused venture capital fund backed by the billionaire investor Paul Tudor Jones and hip-hop star LL Cool J. The crypto VC fund was invoked by Scher, the private equity veteran Glenn Hutchins, and his son James Hutchins as well.

On Thursday, February 4, 2021, a former DCG executive, Travis Scher tweeted about the new crypto-centric venture capital fund he started with two other partners. The crypto VC fund is managed by North Island Ventures partners Scher, Glenn Hutchins, and James Hutchins.

The fund announcement explains that the new venture capital crypto fund initiated by North Island Ventures is backed by well known individuals. Investors in the fund include the rapper and hip hop star LL Cool J and also billionaire investor Paul Tudor Jones. Additionally, the announcement also mentions Twitter COO Anthony Noto and Pepsico CEO Indra Nooyi as investors.

The press release also says that the crypto-focused VC fund has “raised some $72 million.” Moreover, Hutchins details that cryptocurrencies will be the next big trend.

“Crypto promises not just to revolutionize finance but also to invent a new computing paradigm that will be as transformational as the PC, the internet, mobility, and the cloud,” Hutchins said during the announcement. “It is the proverbial next big thing,” the private equity veteran added.

The three managers at North Island Ventures detail that the partners have been investing in crypto for years and Hutchins in particular, started investing in bitcoin (BTC) when it was around $400 in 2016.

So far the new crypto VC fund has already started to invest, as the announcement details that it has made seven investments to-date. Investments include startups like Axelar, Dapper Labs, Nori, and more.

“Crypto is no longer just a fringe technology movement,” Scher stressed. “There is extraordinary momentum behind decentralized solutions to some of society’s biggest problems, and our goal at North Island Ventures is to partner with the top entrepreneurs in the world bringing these solutions to life.”

On Twitter, the former DCG Vice President of Investments further said that year one has been a blast, and that the team is “just getting started.” “We believe that crypto offers solutions to some of the world’s most pressing problems, and our mission is to support the best entrepreneurs in the world bringing these solutions to life,” Scher concluded.

What do you think about North Island Ventures’ new crypto-focused VC fund? Let us know what you think about this subject in the comments section below.

Bitcoin Businesses on the Mend: Report Shows 57% of Crypto Execs Expect the Industry to Accelerate, Companies Are Hiring

23/10/2020 by Idelto Editor

Bitcoin Businesses on the Mend: Report Shows 57% of Crypto Execs Expect Industry to Accelerate, Companies Are Hiring

Digital Currency Group (DCG) recently published the firm’s “State of Crypto 2020” report which polls more than 150 portfolio crypto companies. According to the study, 75% of the respondents believe the value of their business has grown this year, while 50% of the startups have seen outperforming start-of-year projections.

The state of the cryptocurrency industry is growing according to Digital Currency Group’s (DCG) latest report. The study surveyed over 150 DCG portfolio companies’ executives in order to “quantify sentiment and provide qualitative analysis of operational trends in the crypto community.”

One of the biggest obstacles for these firms was the coronavirus outbreak but many firms have recouped from the Covid-19 crisis. Still, Covid-19 and remote work was the main business challenge in 2020 recorded by 23% of the respondents. Other issues considered included third party delays (21%), fundraising (19%), and technical obstacles (13%).

Unlike 2018 and 2019, jobs in the crypto world are rising as DCG notes that 66% of its portfolio companies reported growing in headcount this year. Despite the Covid-19 uncertainty, roughly 35% of the participants said they plan to hire more people this year.

One of the greatest challenges in the cryptocurrency industry right now, besides Covid-19, is regulatory compliance. The DCG study shows 51% of the survey respondents said compliance and regulation is the biggest concern. Roughly 22% of the executives point to security issues like theft, hacks, and scams.

When asked what the most bullish crypto industry development was in 2020, 39% said that it stemmed from decentralized finance (defi) growth. 21% said that bitcoin (BTC) resilience was a bonus and 15% looked to the stablecoin surge in 2020. 10% of the DCG survey participants look forward to ‘Big Tech’ joining the crypto fray.

The 150 portfolio company execs were also asked if they think Ethereum can scale before competing blockchains can catch up to its defi lead. 51% believe that Ethereum will scale first, 25% detailed that it won’t scale first, and 24% said that they were “unsure.”

DCG’s survey then asked the respondents whether or not they think the crypto industry will “accelerate,” “steady,” or “slow” from here. 57% wholeheartedly believe that the crypto industry will accelerate while 40% envision steady action.

Meanwhile, only 3% of the surveyed individuals thought that the industry would slow down from here. The respondents also envision sub-industry consolidation and the greatest expected consolidation would be exchange platforms.

From here, crypto execs think that the consolidation will stem from wallet and custody solutions, trading tools, and payments respectively.

One event that would propel the industry higher would be an initial public offering (IPO) of a major U.S. based crypto firm most of the respondents noted. “We look to 2020 with a renewed sense of opportunity,” the DCG report highlighted.

“2020 has been filled with the unexpected, sad, and norm-shattering—but it provided our space with that ‘supportive’ opportunity we believed it was primed for, and it has delivered,” DCG’s study concluded. “One event that would definitively mark the end of an industry in the shadows is getting people excited: 95% of our survey respondents said a major U.S. IPO would be a positive development.”

Furthermore, the execs surveyed were also asked what they thought the price of BTC would be in 6 to 12 months from now. 48% said $10k to $15k, 22% said $15k to $20k, 21% the price will cross $21k +, 8% think it will be between $5k to $10k, and only 1% assume the price will be below $5,000 per coin.

What do you think about the bitcoin businesses on the mend and the crypto execs’ positivity in 2020? Let us know what you think about this subject in the comments below.

The post Bitcoin Businesses on the Mend: Report Shows 57% of Crypto Execs Expect the Industry to Accelerate, Companies Are Hiring appeared first on Bitcoin News.

Tim Draper’s Venture Studio to Triple-Down on Blockchain Projects With a $25M Fund

06/10/2020 by Idelto Editor

At the LA Blockchain Summit, the blockchain and fintech venture studio Draper Goren Holm announced the launch of a $25 million blockchain fund called “Fund 1.” According to the announcement the money will be used for promising blockchain and fintech startups in Series A and seed investments.

On October 6, 2020, the Los Angeles-based venture studio Draper Goren Holm revealed the launch of a new blockchain and fintech fund at the annual LA Blockchain Summit.

The studio Draper Goren Holm is basically a partnership between Josef Holm, Alon Goren, and the well known venture capitalist Tim Draper. The company is focused on incubating startups that are working in fintech and creating blockchain solutions. For instance, news.Bitcoin.com reported on Draper Goren Holm’s WordPress plugin that gives anyone the ability to create a crypto exchange on a WP-based site.

At the LA Blockchain Summit the three founders discussed the new blockchain and fintech venture called “Fund 1.” The initial investment strategy will be to invest in novel early-stage projects and Draper Goren Holm already has a portfolio of around 18 startups.

Fund 1’s focus is international and transcends borders but for now, the venture fund will concentrate on Europe. The fund is to start investing in blockchain and fintech projects immediately and the firm is opening a new office in Vienna, Austria.

“This first close was a sort of ‘friends and family’ round,” Alon Goren, Founding Partner of Draper Goren Holm said at the LA Blockchain Summit. “Alongside Tim Draper and other individual friends investing in us again, other blockchain funds like Blockchain Founders Fund and the Keiretsu Capital Blockchain Fund of Funds participated.”

Draper Goren Holm’s 18 startups have already seen internal growth and ideas like the digital securities sector, security tokens, and decentralized finance (defi) have bolstered the development.

“I’m thrilled to participate in Draper Goren Holm’s Fund 1 as the team continues to maintain their dominance in Los Angeles, and soon, internationally,” said Tim Draper. “This new fund will allow us to double and even triple-down on our favorite projects.”

The venture studio’s $25 million blockchain investment fund follows Andreessen Horowitz recently funneling $500 million into the crypto industry with the “Crypto Fund II.” Similarly to Draper Goren Holm’s announcement, in the midst of a gloomy global economy, Andreessen Horowitz’s Crypto Fund II aims to cushion crypto networks and businesses.

While discussing the international expansion, the founding partner Josef Holm, said Europe is becoming a fintech hub specifically with “blockchain innovation.”

“It’s incredible to see how pro-crypto and blockchain European governments have become the last couple of years as their favourable regulations have attracted a flock of talented and diverse entrepreneurs building incredible projects across Vienna, Zug, and Berlin, to name a few,” Holm stressed.

“Fund 1 will capture this ever-growing market and Draper Goren Holm will expand its value-add beyond our initial home borders of Los Angeles,” the executive added.

What do you think about Draper Goren Holm’s blockchain and fintech fund called “Fund 1?” Let us know what you think about this subject in the comments section below.

The post Tim Draper’s Venture Studio to Triple-Down on Blockchain Projects With a $25M Fund appeared first on Bitcoin News.