How Crypto Firms Wins Legendary Silicon Valley VC A16z Favorite

a16z (Andreessen Horowitz) is known as one of the most famous venture capital firms in the world and as one of the legendary venture capital firms.

As a commercial company, a16z has invested heavily in the Internet like Facebook and Twitter since 2009 and has gone public and awareness.

Footprint Analytics: monthly loans from multiple sources

Early in the development of blockchain technology, a16z invested in Coinbase, the largest CEX platform in the United States, earning over $ 7 billion in return on investment. With the growth of the blockchain industry and a further increase in the popularity of funds, a16z has developed a unique blockchain investment portfolio, which has been invested in many ways including public channels, DeFi, NFT, etc. .

In 2021, blockchain gaming is exploding and Web 3.0 is in talks. A16z has also updated its capabilities based on popular models and invested in new features such as the Yield Guild Games blockchain game and Web 3 compatible devices. Pen protocol.

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Why 16z has become the myth of crypto investing

a16z is one of the first venture capital organizations to enter the cryptocurrency space. Many companies are investing in the crypto space. Why can a16z become a crypto-investing legend after a few twists and turns?

-Skip the short estimate and become a long term trader in the cryptocurrency space.

16z developer Mark Anderson says: Software is invading the world. (The software eats the world.)

With many years of experience in the Internet field, 16z has always paid special attention to the development of next-generation technology companies. As blockchain, a new type of computer, becoming popular, a16z has also become one of the first marketers in the blockchain space. 16z believes that blockchain technology is the innovator and the main guardian of the next generation of computerized information technology.

In a short period of over 10 years, cryptocurrencies have undergone many changes, all of which have brought new processes and ideas. a16z was explicitly mentioned on the official website. They are long-term investors in the cryptocurrency space and have solid capital to protect the forex market.

-Become an in-depth broadcaster at the Hollywood Institute of Services, Research and Technology.

Both 16z builders have been through ups and downs in the industry, so after investing in startups, they paid a lot of money to deliver more value than money, and asked for training to support them. good CEOs. Pay close attention to the company's investment strategy and content knowledge, and assist developers with marketing and recruiting.

Ben Milne, founder of Dwolla, a financial services program launched by Anderson, says employees are almost always talented.

-Be an entrepreneur who listens to your communications and likes to present.

Before 16z, most venture capitalists focused on marketing and didn't disclose too much to the public. However, 16z has a wide range of differences and pays great attention to communicating with the outside world.

If you look at the legitimate 16z website, the team has 109 members, and the text, videos, podcasts, and social media content on the site are quite extensive. 16z also launched its information company “Future” this year.

At the same time, key members of the company, such as Mark Anderson, also frequently appear in the big news, spreading their tweets and cutting edge ideas, calling themselves the "market capitalization asset" by claiming to be the one of ours. the largest conglomerates in Silicon Valley. "In industry.

Footprint analysis: statistics on types of investor investments

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So how are crypto companies benefiting from 16z?

Footprint analysis: a16z portfolio (2021)

-Basic technology, new ideas

The most important thing the 16z project has invested in is its sophisticated technology and innovative ideas.

The third big innovation after this is Bitcoin and Ethereum, Ripple is committed to creating a blockchain-based cloud computing platform called Oasis Labs, an attempt to shatter the concept of the internet's giant data island, and Ripple hopes to do so. like data .... Many crypto companies with hardcore tech and new tech have grown in popularity 16z.

Recently, the concept of metamonde has swept the world and many DAO regulatory agencies have also emerged. a16z has also invested in DAO Friendships with Benefits, digital toy company OnChain Studios and other pioneers of innovative ideas. With the improvement of these projects, if this investment in 16z Success will gradually expand.

-Long-term investment, be honest about the basics

A strong and stable business requires maturity and reliability.

In the crypto world, 16z knows this well. From the capabilities of a legitimate website, you can see that the a16z investment is all about a simple process and smart contract planning. The AVA Labs decentralized services platform, the TradeBlock blockchain data platform and the Arewave decentralized storage protocol are all major projects in their portfolio.

Footprint Analysis: Investment Cycle Statistics (2021)

16z is profitable for long term investments, repeatedly refers to the strength of long term investments, and promotes adding weight to investments.From the footprint data, it can be seen that while most of the current investments are focused on the seed environment, more than half of the 16z investments in recent years have been for them. Take the example of Coinbase, a16z invested $ 25 million in Series B funding in 2013 and an additional $ 25 million in 2014.

-The team is strong and fast

A key member of a16z says:Only well-informed entrepreneurs can understand the changes in the industry, and only quick teams can handle the unknown blockchain industry.They therefore firmly believe that investing is like a group investment.

In addition, a16z will support the investment team by providing after-sales service from product marketing and recruiting staff to sales communications.

This is important for the personal ability of the entrepreneur not only to affect the operations in which 16z has invested, but also to get the most out of the companies involved in the business venture.

concludes

Amazed by the vision and benefits of a16z, a16z long term business practice strategic team, survival theory that speaks volumes, full service, use of technology, focus on focus and focus on focus. crypto group. He's a good model.

Hopefully the special 16z can surprise us even more in the future.