The slide in the cryptocurrency industry in 2022 also has an effect on huge investment money, like a16z.
According to sources of Wall Street newspaperin the very first half of 2022, the worth of the a16z crypto fund fell by forty% due to the collapse of the cryptocurrency industry.
This is an sudden consequence since at the finish of 2021, the a16z crypto fund is reporting ROI returns of up to ten.6x. a16z is a effectively-recognized identify in the cryptocurrency sector since it is a single of the biggest cryptocurrency investment money, as effectively as acquiring participated in fundraising for big tasks. The fund’s portfolio involves big names this kind of as Aptos, Coinbase, Compound, dYdX, Flow, Lido, LayerZero, Maker, Sui, Nansen, Close to Protocol, OpenSea, Optimism, Sky Mavis (Axie Infinity), Uniswap, Yuga Labs …
To date, a16z crypto fund has raised $ seven.six billion to invest in crypto and Web3. In May 2022, the fund announced its newest funding round with $ four.five billion, a record cryptocurrency. At the time, a single of a16z Crypto’s managers, Arianna Simpson, mentioned that “a bear market is a good time to look for opportunities,” but the fund’s current investment functionality has not proven this.
During the fourth quarter of 2021, a16z participated in 26 distinctive cryptocurrency and blockchain funding specials. The over variety dropped to 17 in each the very first and 2nd quarter of 2022. By the third quarter of this yr, a16z participated in raising capital for only seven tasks.
Not only a16z, but all other cryptocurrency investment money also come to feel the downtrend scenario plainly. According to statistics from The Block, the worth of the fundraising rounds in the cryptocurrency sector in the third quarter of 2022 is the continuation of the descending chain in the course of the retracement of the cryptocurrency industry.
There are names like Three Arrows Capital that even fail due to a lack of chance management in the investment procedure.
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