The VC firm raised the sum for its third fund geared toward digital assets, with the two previous funds raising $350 million and $515 million. In the new raise, the Silicon Valley outfit more than doubled its target amount. Andreessen Horowitz says the fund will focus on seeking out “the next generation of visionary crypto founders”. Investments will be made through the firm’s cryptocurrency division.

The raise signals confidence in the digital assets sector as it’s facing regulatory scrutiny.

“We believe that the next wave of computing innovation will be driven by crypto. The size of this fund speaks to the size of the opportunity before us: crypto is not only the future of finance but . . . is poised to transform all aspects of our lives,” wrote Chris Dixon and Katie Haun, partners at the fund.

The two previous funds for digital currencies invested in companies like Uniswap, a decentralised Exchange, and Solana, a blockchain provider.