Andreessen Horowitz expands $2.2 billion fund beyond crypto

Andreessen Horowitz announced on October 22 that its a16z Crypto investment arm was becoming a16z Frontier, Fortune reported. The venture capital firm is expanding the scope of an existing $2.2 billion fund to back startups developing artificial intelligence (AI), robotics and other emerging technologies.

The fund was announced in May, when a spokesperson told Fortune it was “100% dedicated to investing in crypto entrepreneurs.” October’s announcement changes where that fund can invest; it does not represent another $2.2 billion raised.

An earlier move beyond crypto

Managing partner Chris Dixon wrote that more businesses were using blockchain—the digital-ledger technology used in crypto—behind the scenes. That was making the distinction between crypto companies and other businesses less clear, he argued.

The investment arm had already backed a business outside crypto. In June, a16z Crypto led a $33 million seed funding round for Ornn, which develops financial products for the AI computing market. The $33 million was the size of the round, not a stated individual contribution by a16z Crypto.

Who will lead the expanded fund

Dixon will lead the fund alongside Marc Andreessen, Ben Horowitz and general partners Eddy Lazzarin and Guy Wuollet, according to Fortune.

The broader mandate does not end its crypto investing. The firm will continue backing crypto startups and advocating for crypto regulation while extending the fund’s reach to other technologies, Fortune reported.