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Andreessen Horowitz plans $1 bln cryptocurrency VC fund
- randomopining 5y agoThis summer the institutional and boomer money is gonna flow in.
- jka 5y agoIt'll be educational to see how this plays out. My perspective is that cryptocurrency-related technology often succeeds or fails based on high-precision technical correctness, and that large funding rounds may (intentionally or otherwise) prioritize speed and growth over observance of small details. Perhaps the infrastructure does exist to engineer software as precisely as could be required here - or perhaps this fund will produce suitable tools as an evolutionary side-effect.
- droopyEyelids 5y agoI wish it was easier to understand how much 'skin in the game' AH will have. Will they make money even if crypto falls on its face?
- Traster 5y agoFor hedge funds they used to commonly do 2 and 20 - 2% fee on investment + 20% of all profits. So if you invest $1Bn, they're getting $20m straight up, and if they make 10% on your investment ($100m) they'll make another $20m. I'm not saying that AH are exactly there - but that's likely the type of structure they use. The key though, is that a 10% return with that fee structure isn't great and they won't be getting much repeat business at that level. Long story short, yes they'll make something even if crypto goes to 0, but it's not good business for them.