Bitcoin and Co. have experienced a dramatic fall in value over the past few weeks. Investment companies that invest in venture capital don’t seem to care. You have a long-term horizon.
Bitcoin and other cryptocurrencies have lost massively in value in recent weeks.
The listing of Bitcoin and Co. has suffered badly in recent weeks. However, this does not prevent investors from investing their capital in the future of the crypto industry. Venture capital (VC) specialist Andreessen Horowitz announced that he had raised $4.5 billion for his latest crypto fund. The venture capitalist, which was set up by Netscape founder Marc Andreessen, has already financed numerous blockchain companies, such as the crypto exchange Coinbase.
Start before the crypto collapse
Of the capital that has now been collected, 3 billion are to be invested in existing start-up companies, and the remainder is to be available as start-up capital for new projects. The venture capital specialist already announced the plans for the crypto fund in January, when the crypto decline was much less dramatic. Bitcoin has lost more than half of its value from its peak in November last year. Recently, the system of the stablecoin Terra USD collapsed.
But Andreessen Horowitz is convinced that the blockchain will drive the next relevant computer cycle. Many of the best protocols and companies are built during times of market instability or downturns, a spokeswoman for the investment firm told the Financial Times. This allows one to focus on technology and construction rather than being distracted by short-term price swings.
The VC house has thus launched four funds with a total volume of 7.6 billion dollars for the crypto sector. But the role of venture capitalists in the sector is generally controversial. The investment companies also financed tech companies that now dominate the industry. Now they are investing in companies that want to build the Web 3. With this technology, power is supposed to return from the IT giants to the users. Many are now wondering whether Web 3 will really be built as decentrally as promised.
Bitcoin app uses crowdfunding
The Zurich bitcoin fintech Relai also carried out a round of financing, raising around CHF 2.2 million. Investment companies such as Redalpine contributed CHF 1.2 million. The rest was collected from over 850 private investors with the help of the Crowdcube crowdfunding platform. It is said that numerous customers of the app participated in the financing round. With the smartphone app of the company, which was founded in 2020, amounts from 10 francs can be easily invested in Bitcoin – savings plans can also be set up.
According to Relai, the app has been downloaded more than ten thousand times. The users have invested over 50 million Swiss francs in Bitcoin. The user base is to be expanded throughout Europe with the fresh capital. Relai wants to increase the number of currencies that can be used to invest in Bitcoin.