Launch of a $1.5 Billion Cryptocurrency Venture Capital Fund by Katie Haun!
Katie Haun, a crypto investor who recently left Andreessen Horowitz, has raised $1.5 billion for her new fund, breaking a previous fundraising record in the process.
According to Pitchbook, the launch of Haun Ventures is the largest debut venture fund ever raised by a single female founding partner in the United States. Mary Meeker, a former investment banker, held the previous record with a $1.3 billion fund she established after spinning out of Kleiner Perkins.
“It feels like there’s a lot of pressure, to be honest.” I believe it pushes everyone on the company,” Haun said in her first broadcast interview since leaving Andreessen Horowitz, which was broadcast on CNBC. “Web3 is the new era of the internet, and it deserves a new era of investors,” says the founder of Web3 Technologies.
The term Web3, also known as Web 3.0, refers to general computer applications that are built on top of the blockchain, which is the same technology that underpins bitcoin and other cryptocurrencies. NFTs, which are traceable ownership certificates attached to digital files such as artworks or videos, and decentralized finance applications, in which self-executing “smart” contracts can be used to replace middlemen such as lawyers and bankers in certain types of transactions, are examples of such technologies. However, the area is currently in a very early and experimental stage in general terms.
Haun Ventures will invest in both start-up equity and, in some cases, the cryptocurrencies produced by those start-ups, also known as tokens, in order to diversify its investment portfolio.
Part in the Deployment of 3 Other Crypto
The fact that she was part in the deployment of three other crypto funds taught her that “there is still a tonne of promise in crypto and Web3 equity business models, but there is also a tonne of potential in token business models,” she said. Without possessing tokens, “I don’t believe that you can truly be a crypto investor,” says the author.
Haun’s fund will be divided into two portions: $500 million for early-stage firms and protocols, and $1 billion for “acceleration,” or later-stage projects. Haun’s fund will be divided into two components.
Former federal prosecutor Haun joined Andreessen Horowitz as the company’s first female general partner in 2018, where she co-led the company’s several cryptocurrency funds with Chris Dixon. Moreover, Andreessen Horowitz will be a limited partner in Haun’s newest fund, and Marc Andreessen, the firm’s founder, as well as Dixon, have all made personal contributions to her new initiative.
Many people in Silicon Valley were caught off a surprise by her decision to leave. Despite the fact that it was a “dream job,” Haun explained that she was leaving in order to “take greater risks” and “move out of her comfort zone.”
“It’s obvious that there’s a romantic relationship and that there are buddies there. “We aim to continue to work closely with Andreessen Horowitz,” she stated emphatically. We don’t have to lead every deal because of the size of our fund, and we can work well with a large number of other cryptocurrency investors — entrepreneurs don’t want a single investor on their cap table, especially in the early rounds.
Number of Former Employees Joined the New Fund
On the nine-member Haun, Ventures team are Chris Lehane, a former Airbnb executive and Clinton administration official, Tomicah Tillemann, a former staffer for Vice President Joe Biden, and Rachael Horwitz, who has worked as a communication manager at companies including Twitter, Facebook, and Coinbase. With Haun’s departure from Andreessen Horowitz, a number of former employees joined the new fund. In addition to being more “nimble,” she claims that having a smaller workforce allows the firm to function as “venture contributors” in addition to being a venture capitalist.
It’s “gone are the days when entrepreneurs were only interested in the capital,” she remarked. “One of the things that Haun Ventures will do for our founders is to contribute very actively to the projects in which we invest,” says the company’s CEO.
The debut comes at a time when the bitcoin market is in a bear market. The value of the world’s largest cryptocurrency has fallen by almost 40% since its high in November, with lesser cryptocurrencies such as ether suffering even greater losses. Haun, who has made investments through previous downturns or “crypto winters,” believes there is still a lot of developer activity and potential upside.
It was “certainly a crypto winter” when she launched the first two crypto funds, she said. “Projects were still being born throughout that cycle,” she noted, citing Solana and NFT exchange OpenSea as examples. The fact that great goods and excellent protocols will be produced regardless of the price is something I’ve learned as an investor with a long-term perspective on space.
Coinbase: A Cryptocurrency Exchange
Coinbase, a cryptocurrency exchange for which Haun serves on the board of directors, has lost almost 58 percent of its value since reaching a high point last year. Despite this, Haun claims that private start-up valuations are not being impacted at this time.
It appears that there is a slight latency. The valuations of cryptocurrency ventures continue to be extremely high. After a macro market correction occurred in the past, it took some time for the correction to be reflected in cryptocurrency prices. “I believe the same could be true in this case,” she stated.
The amount of money moving into private enterprises is at an all-time high, despite the fact that cryptocurrencies are trying to regain momentum. The CB Insights research shows that blockchain start-ups raised a record $25 billion in venture capital funds last year, setting a new record. This represents an eightfold increase over the previous year.
What Celebrities Says
The influx of venture capital funds has caused some debate on social media platforms such as Twitter.
Elon Musk, the CEO of Tesla, and Jack Dorsey, the co-founder of Twitter — two of the world’s most well-known digital billionaires. And have been among others who have raised concerns about “Web3.” Dorsey contends that venture capitalists and their limited partners are the ones who will ultimately own Web3 and that the company “will never escape their incentives,” as he put it in a tweet, referring to it as a “centralized entity with a different label.”
“I see it as Web3 finally receiving some of the critical attention it deserves in the area,” Haun said of the development. The former, if I had to choose between Jack Dorsey delivering some critique. And some of the myths that we’ve been hearing propagated for so long in the sector. I’d go with the former.” As a result, I believe that debate is beneficial.”