Cryptographic investor Katie Horn raised $ 1.5 billion for her new fund after leaving Andreessen Horowitz, breaking multiple records in the process.
According to Pitchbook, Haun Ventures kickoff is the largest debut venture fund ever raised by a female solo founding partner. Former investment banker Mary Meeker held her past record with a $ 1.3 billion fund after spinning out of Kleiner Perkins.
“Honestly, it feels like a lot of pressure, but I think it motivates everyone on the team,” Haun told CNBC in his first broadcast interview after leaving Andreessen Horowitz. “Web3 is a new era for the Internet and deserves a new era for investors.”
The term Web3 or Web3.0 broadly refers to common computing applications built on the blockchain. This is the same technology that underlies Bitcoin and other cryptocurrencies. Examples include NFTs, which are traceable ownership certificates attached to digital files such as artworks and videos, and self-executive to replace intermediaries such as lawyers and bankers in certain types of transactions. There are decentralized finance applications that can use “smart” contracts. But overall, this space is still in the very early experimental stages.
Andreessen Horowitz General Partner, Katie Horn
Source: CNBC
Haun’s funds will be split into two segments. $ 500 million for early stage enterprises and protocols, $ 1 billion for “accelerated” or late projects.
Former federal prosecutor Haun became Andreessen’s first female general partner in 2018 and co-led several crypto funds with Chris Dickson. Andreessen Horowitz has become a limited partner of Haun’s latest fund, Marc Andreessen is the founder of the company, and Dixon has all personally contributed to her new initiative.
Her exit was surprised by many in Silicon Valley. It was a “dream job,” but Haun said her departure was to take more risks and “get out of her comfort zone.”
“Clearly there is a relationship and there is a friendship. We will still work closely with Andreessen Horowitz,” she said. “One of the unique things about our fund size is that you don’t have to lead every transaction. You can play well with many other crypto investors-the founder is just on the cap table. I don’t want one investor, even in the early rounds. “
Haun Ventures’ nine-person team includes Chris Lehane, a former Airbnb executive and Clinton administrator, Tomicah Tillemann, a former staff member of President Joe Biden, and Rachael Horwitz, who headed the communications team for Twitter, Google, Facebook, and Coinbase. .. Several employees left Andreessen Horowitz with Haun for a new fund. She said smaller teams would allow the company to become more “agile” and act as a “venture contributor” in addition to venture capitalists.
“The days when founders just want capital are over,” she said. “One of the things Haun Ventures does for its founders is to actively contribute to the projects we invest in.”
The launch will take place in the Bitcoin bear market. The world’s largest cryptocurrencies have fallen by about 40% since their peak in November, and smaller cryptocurrencies like Ether are suffering more serious losses. Having survived the past recession or the “winter of cryptocurrencies,” Haun said there is still a lot of developer activity and upturn.
“Looking back at the development of the first two crypto funds, it was a very volatile period-it was definitely a crypto winter with prices down 70%, and projects were still born during that cycle. “She said, emphasizing Solana, and the NFT exchanges OpenSea. “One of the things I’ve learned as a long-term investor in this area is that good products and good protocols are built, regardless of price.”
Cryptocurrency exchange Coinbase, of which Haun is a board member, is down about 58% from last year’s highs. Still, Haun said the reputation of private start-ups has not yet been affected.
“There’s a bit of a delay. The crypto project is still very well received. Last time, a macro market fix took some time before it was converted to crypto. The same is true here. I think … “She said.
Cryptocurrencies may have a hard time regaining momentum, but the dollar flowing into private companies is always high. Blockchain start-ups brought record $ 25 billion in venture capital last year, according to recent data from CB Insights. That number is eight times that of the previous year.
The flood of venture dollars has caused some controversy on Twitter.
Tesla CEO Elon Musk and Twitter co-founder Jack Dorsey (two of the world’s most famous technology billionaires) are questioning Web3. Dorsey tweeted that VCs and their limited partners would eventually own Web3 and “never escape their incentives,” calling it “a centralized entity with different labels.”
“I see it as Web3 finally got some of the critics it deserves in the field,” Haun said. “If we could choose whether Jack Dorsey would provide criticism or some of the myths we’ve heard that have been around for a long time in space, we would certainly choose the former. So the debate is sound. I think.”