According to crypto fund founder Andreessen Horowitz, Chris Dixon, most of the capital in his newest fund has yet to be deployed.

In May, a16z announced a $4.5 billion venture fund for web3, crypto and blockchain startups. Speaking on The Block podcast on December 19, Dixon said they had rolled out less than 50%, so most of the recent fundraising remains.

The venture firm has an active crypto portfolio of almost 50 companies, and is still interested in expanding its investments in the sector.

Additionally, the company has raised a total of $7.6 billion for the industry after launching its first crypto fund in 2018.

A16z Hodling for the future

Dixon said that venture funds have a minimum lifespan of 10 years, adding: “Honestly, it’s usually 15 years and we extend it.”

He added that the funds have kept 95% that they have ever invested in, stating:

“All our data shows that the vast majority of returns are in the last few years of funds, and the worst thing you can do in VC is sell good assets too early.”

Losses occur when investors panic and sell in bear markets, and cryptocurrencies, like other markets, are cyclical, so savvy savers tend to buy and hold through tough times.

Dixon also said the company no longer invests in projects that build on corporate networks like Facebook and TikTok. He added that decentralized networks have reached enough maturity to compete with corporate networks.

In October, crypto potato reported that a16z’s flagship fund was down 40% in the first half of the year. Those losses will be exacerbated by the end of 2022, but Dixon and the company seem unfazed.

In September, Andreessen Horowitz announced a free licensing system for NFTs.

Crypto Markets Deeper in The Red

The deepening of the bear market has not deterred the venture capital giant. Markets have lost another percentage point on the day, with total capitalization falling to $840 billion as of this writing.

However, they have yet to break down to the November 22nd cycle low of $820bn and are range bound within this side channel for now.