Web3 has exploded like that irritating pimple on your face.

Durwin Ho

Published in

Coinmonks

3 min readJun 17, 2022

A16Z’s 4th crypto fund is $4.5B. Who’s most bullish now?

All I have been hearing is how much of a bear market it is right now.

Doom and gloom on every headline.

Pain and stain on every walls of the internet.

Luna’s collapse caused the cryptogeddon.

Stock market is tanking, big tech is hurting, the party is over and retail investors are getting punched in the jaw.

YC is telling their founders to tighten up, prepare for the worst and expect blood on the streets.

Investors big and small are signalling its the end like the bells on the Titanic.

Founders, we can all forget about raising anything and just nose dive into building mode.

Blah blah blah.

Yet one of the biggest VC investing in web3 just raised $4.5B to invest more into the bear market.

Let’s see what happened in cryptoland in the last month shall we?

Everyone has a new wallet now.

Coinbase, Robinhood and even GameStop released their web3 wallets perhaps because they started realising that wallets are literally the first thing any web3 user must have in order to enter the space.

Instagram and Spotify are testing NFTs for their creators.

Gucci, Balmain, and Balenciaga and Prada just arrived at the party and are releasing their own NFTs.

Even Vatican City is entering the Metaverse with their digital NFT gallery.

NFTs like Bored Ape created an entire new sub-ecosystem within NFT culture and built a multi-billion dollar business.

Milady NFTs fell from grace after the founder self-doxxed.

Ebay launched its first NFT collection too.

ETH continue teasing us about the merge.

Martin Shkreli is coming to crypto.

Yup Pharma Bro, convicted and jailed for fraud, is fresh outta jail and deep into crypto too.

Like the return of the Jedi, Adam Neumann is also coming to crypto.

Think about all these news.

The world is burning, the economy is on fire, every industry is suffering, but in just the last month, Web3 got a gargantuan $5B boost.

“Andreessen Horowitz has announced a $4.5 billion fund for backing crypto and blockchain companies. The firm will invest in cryptocurrencies and company equity.”

They have raised 4 crypto specific funds in the last few years.

With a 2% management fee, that’s easily $90M/year for a $4.5B fund.

To even get a 2X return (that’s ~$10B), they would have to invest in everything.

They literally invest in the infrastructure, layers, early stage founders, novel tech, DeFi, GameFi .etc.

They have to develop and fuel the narrative, stories, imagination and hopes of the future for Web3.

If they were city planners dedicated to build the web3 Utopia, that means constructing and planning everything from the underground pipes, sanitation, security, public transportation, pathways, roads, residential buildings, power plants .etc.

Now you see why they need that kind of financial war chest?

Could A16Z be wrong about web3?

Sure, but they are seasoned veterans and this ain’t their first rodeo.

How can you not be optimistic about the future of Web3?

Which sector in Web3.0 are you most bullish about?

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Web3 has exploded like that irritating pimple on your face.

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Written by Durwin Ho