May 26, 2022

Katie Hahn, who led Andreessen Horowitz’s cryptocurrency division before announcing her departure last December, is set to take over the front for her new organization, which she calls Hahn Ventures. Created to support crypto startups, the VC firm is launching with $1.5 billion in capital split between two funds: a $500 million early-stage fund and a $1 billion “accelerator fund”.

The company’s launch is one of the most publicized debut funds in recent history. Khan was one of Andreessen Horowitz’s most high-profile turncoats in recent years and was the public face of his crypto efforts at a time when the company’s founders were distancing themselves from the public eye.

“We believe the next generation of the Internet deserves a new generation of investors,” Hawn wrote in a blog post announcing the fund.

The success of Hone Ventures largely depends on timing. The crypto bull trend has been deepening for several years now, and many of the most active elements of the market seem to be in deep corrective territory right now. Cryptocurrency prices plummeted as NFT sales and DeFi protocol aggregate value closed. Meanwhile, several unicorn crypto startups have already added to their military budget to counter any market downturn.

However, these macro factors have not prevented crypto deals, and Hone Ventures has already been involved in some of them, including Aptos, Autograph, and OpenC Series C. Hone Ventures is investing $1.5 billion in capital. Other crypto funds such as Paradigm and Electric Capital have launched large funds in recent months.

All this new money is distributed among several employees. There are only nine people on the Hone Ventures team, but “expansion is planned in the near future.” Many of the team members came directly from a16z, including CMO Rachel Horwitz, global policy chief Tomika Tillman, and Comus chief Nicholas Pacilio. Sam Rosenblum joins Polychain Capital and Chris Lehane as Chief Strategy Officer after a long tenure as Airbnb’s Head of Policy.

It looks like Hawn Ventures will try to spearhead regulatory expertise as one of the company’s defining assets, which is not surprising given Hawn’s experience as a federal attorney in the Justice Department. However, this framing will pit him directly against Andreessen Horowitz, who has gone to great lengths to form his own cryptocurrency policy division. At this point, the firm is clearly aiming for success as they have already invested in several deals, while a16z is a major investor in Hone Ventures, as are some of the firm’s top partners.

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