A16z is increasing the amount of its cryptocurrency fund to $2 billion. A16z is a venture giant, it and is in the business of technology venture funding. The company is based in Menlo Park, and it says that it will charge ‘a 2.5% management fee for most of the first decade of the fund’, which could result $50 million in fees every year.
25% of the profit will be taken by the general partners, which is also referred to as a ‘carry’. Typically, a venture capital carry sits within 15% and 30%, and if the fund doesn’t make a profit and even loses funds, it will not take a carry.
The firm developed the fund earlier this year, as it claimed to be wanting to raise as much as $1 billion. Last month, it cashed out more than $400 million in stock of Coinbase for its investors, as it was featured on Nasdaq for the first time. The venture capitalist was one of the first investors of Coinbase.
A16z has more than $800 million in cryptocurrency funds.