Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Andreessen, others, invest in U.S. digital currency fund

Cryptocurrency Mar 08, 2018 07:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Andreessen, others, invest in U.S. digital currency fund

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - U.S.-based Multicoin Capital, an asset management firm with a long-term positive view on digital currencies, has raised capital from a slew of big individual and institutional investors led by influential venture capitalist Marc Andreessen, its co-founder and managing partner told Reuters.

Kyle Samani, who co-founded Multicoin Capital last October, said capital raised from investors would help the firm reach a $250-million funding target for its flagship crypto fund, which currently has about $50 million, by the end of the end of June.

Multicoin views cryptocurrencies as a long-term investment, typically three to four years. That's far longer than the typical horizon of digital currency funds of just a few months.

"What you're seeing is the next wave of serious investment coming to an exciting, recently-legitimized asset class," Samani said in an interview late on Wednesday.

Digital currencies such as bitcoin have emerged as a new asset class over the last two years as its underlying technology called the blockchain, an online database, has gained worldwide acceptance from corporations and financial institutions.

Multicoin is one of 225 crypto funds across seven strategy types, with combined assets estimated at $3.5 billion to $5 billion, according to data from Autonomous NEXT. The funds invest in cryptocurrencies, which use cryptography for security.

Aside from Andreessen, who co-founded the Silicon Valley venture capital firm, Andreessen Horowitz, Multicoin's investors include David Sacks, the first chief operating officer of PayPal Holdings Inc and founder of enterprise social network Yammer Inc, and Elad Gil, co-founder of genomic testing company Color Genomics, Samani said.

Chris Dixon, a general partner at Andreessen Horowitz, and Bill Lee, a partner at Craft Ventures also invested in Multicoin, he said.

Multicoin's funding reflects a trend in which venture capital partners and investors are turning to crypto funds as individual investors. Most traditional venture capital firms have investor agreements that bar them from deploying cash into high-risk assets, such as digital currencies.

"While there are lots of similarities between crypto investing and traditional startup investing, there are many differences," Samani said.

"Most obviously, crypto assets become liquid much sooner in their life cycles than traditional private equity," he added. "In addition to liquidity, everything in crypto is open source, which requires thinking about investing in a fundamentally different way."

Samani said he believes there could be consolidation in the crypto funds industry, and he expects sub-scale funds to have difficulty surviving.

Andreessen, others, invest in U.S. digital currency fund
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email