Venture Capital Giant Injects Millions into Ethereum DeFi Startup: Good for ETH
Legendary VC Firm Backs Ethereum Startup On Thursday, Fortune revealed that Compound — a decentralized platform that allows users to lend out and borrow Ethereum-based assets like ETH itself, USD Coin, Basic Attention Token, and 0x — has secured a $25 million worth of investments from Andreessen Horowitz’s a16z (round leader), Paradigm, Bain Capital Ventures and Polychain Capital. Last September, the crypto fund of the venture capital behemoth made a $15 million U.S. dollar investment into the MakerDAO blockchain project.
Katie Haun, a General Partner and co-founder at a16z crypto, explained the investment: As a first mover and innovator in stablecoins, MakerDAO represents a very compelling opportunity in the crypto space. Along with this token purchase, MakerDAO will reportedly receive operating capital for the startup’s next growth stage, three years of financial support for the MakerDAO community, “and most importantly, full operational support from the 80+ person Andreessen Andreessen Horowitz a16z team.”.
