Andreessen Horowitz Backing Blockchain Startup

| Publish date: 08/30/2018
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According to mainstream media, venture capital firm Andreessen Horowitz is investing even more money in one particular Blockchain based startup that is hoping to become the foundation of the new Internet.

Investing in the Dfinity Foundation

The startup in question is called Dfinity Foundation and it has already raised $102 million in a private token sale to investors. With this, the startup’s total fund raising for its project is up to $190 million so far. Besides Andreessen Horowitz, other investors in the project include PolyChain Capital, Multicoin Capital, Aspect Ventures and SV Angel.

Investors have opted to buy Dfinity’s digital tokens rather than equity in the startup. In this round of funding, the tokens sold for $4.18 apiece, according to the president and chief scientist of Dfinity, Dominic Williams. Williams also stated that tokens worth about $35 million were also airdropped to members of the community.

Andreessen Horowitz has stated that Dfinity is the largest position holder in its 2-month old cryptocurrency fund. While the firm declined to say exactly how much it has invested in the new project, this is the second time that Andreessen Horowitz is putting money into the startup.

According to the venture capitalist, Dfinity’s team is one of the main reasons why it is investing so heavily in the startup. Staff members consist of ex-Alphabet Inc. and Uber Technologies Inc. engineers as well as Ph.D.’s from Yale University. Andreessen Horowitz general partner and head of its crypto fund, Chris Dixon stated that the firm was expecting to profit from the increase in the project’s token value rather than from its revenue.

The New Internet

While Blockchain related startups are popping up everywhere now, Dfinity is one project that has attracted a lot of attention and is one that investors are watching very closely.

This is because the startup is working on creating a “new Internet” – a decentralized cloud computing network, something that could dethrone all the cloud computing giants in the industry today. In fact, some experts are saying that Dfinity will rival the number one cloud computing service in the world, Amazon Web Services.

Andreessen Horowitz’s Dixon said that while the project is in its early stages, its potential was enormous. Most Blockchain projects today struggle with the ability to support a growing network, the biggest examples being the Bitcoin and Ethereum networks. However, Dixon believes that Dfinity will be able to solve that problem and revolutionize the industry.

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