Key Takeaways
- • Andreessen Horowitz (a16z) promoted 30-year-old partner Arianna Simpson from deal partner to general partner, roughly a year after she joined, to help deploy its $2.2 billion crypto fund, according to the company's Monday announcement reported by CNBC.
- • The $2.2 billion fund is the firm's third dedicated crypto fund, announced in June 2021, and is more than seven times larger than its first.
- • Simpson joins Ali Yahya, Katie Haun and Chris Dixon, who run the firm's crypto efforts.
- • Simpson argues that private crypto valuations are a lagging indicator, and that the firm will focus on underlying technology rather than short-term prices, even though bitcoin has fallen by half from its April high above $60,000.
Summary
Andreessen Horowitz is adding a high-profile partner to help deploy its $2.2 billion cryptocurrency fund. The firm announced on Monday that Arianna Simpson, 30, is being promoted to general partner from deal partner, roughly a year after joining, according to CNBC.
Simpson's background includes a global marketing role at Facebook, followed by a position at BitGo in her early 20s. She launched her own venture firm, Autonomous Partners, at age 24 to invest in blockchain and crypto companies, a decision she told CNBC was unpopular with friends and mentors. "The opportunity cost of not going into this industry was just too high," she said. Her firm backed companies such as Celo during the 2018 bear market, when bitcoin fell as much as 80% and most smaller cryptocurrencies followed suit. She also said she tried to persuade Facebook to launch a crypto project before its Libra initiative, now called Diem, which she described as "four to five years too early."
Andreessen Horowitz entered crypto through its 2013 investment in Coinbase and began raising dedicated crypto funds three years ago, during the bear market known as the "crypto winter." The firm announced its third crypto fund in June, and the $2.2 billion vehicle is more than seven times larger than the first. Simpson joins Ali Yahya, Katie Haun and Chris Dixon, who lead the firm's crypto work. Haun, a former Justice Department prosecutor, previously investigated the Mt. Gox exchange and the Silk Road marketplace.
The firm holds stakes in companies tied to the recent NFT boom, including OpenSea and Dapper Labs, and Simpson highlighted the firm's focus on decentralized finance (defi) and on less obvious categories such as gaming. Bitcoin has fallen by about half from its all-time high above $60,000 reached in April, but Simpson said private-market prices are a "lagging indicator -- not a leading one." She added that the firm focuses on technology rather than headlines, noting that "bear markets are often where the real work happens."
Simpson's background includes a global marketing role at Facebook, followed by a position at BitGo in her early 20s. She launched her own venture firm, Autonomous Partners, at age 24 to invest in blockchain and crypto companies, a decision she told CNBC was unpopular with friends and mentors. "The opportunity cost of not going into this industry was just too high," she said. Her firm backed companies such as Celo during the 2018 bear market, when bitcoin fell as much as 80% and most smaller cryptocurrencies followed suit. She also said she tried to persuade Facebook to launch a crypto project before its Libra initiative, now called Diem, which she described as "four to five years too early."
Andreessen Horowitz entered crypto through its 2013 investment in Coinbase and began raising dedicated crypto funds three years ago, during the bear market known as the "crypto winter." The firm announced its third crypto fund in June, and the $2.2 billion vehicle is more than seven times larger than the first. Simpson joins Ali Yahya, Katie Haun and Chris Dixon, who lead the firm's crypto work. Haun, a former Justice Department prosecutor, previously investigated the Mt. Gox exchange and the Silk Road marketplace.
The firm holds stakes in companies tied to the recent NFT boom, including OpenSea and Dapper Labs, and Simpson highlighted the firm's focus on decentralized finance (defi) and on less obvious categories such as gaming. Bitcoin has fallen by about half from its all-time high above $60,000 reached in April, but Simpson said private-market prices are a "lagging indicator -- not a leading one." She added that the firm focuses on technology rather than headlines, noting that "bear markets are often where the real work happens."
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.