While the cryptocurrency market’s most recent hype wave seems to be dying down after a spectacular rise, Andreessen Horowitz’s crypto arm is reaffirming its commitment to startups building blockchain projects with a hulking new $2.2 billion crypto fund.
It’s the firm’s largest vertical-specific fund ever — by quite a bit.
Andreessen Horowitz’s 2018 crypto fund ushered in $300 million of LP commitments and its second fund, which it closed in April of last year, clocked in at $515 million. The new multi-billion dollar fund not only showcases how institutional backers are growing more comfortable with cryptocurrencies, but also how Andreessen Horowitz’s assets under management have been quickly swelling to compete with other deep-pocketed firms including the ever-prolific Tiger Global.
With this announcement, Andreessen now has some $18.8 billion assets under management.
LPs are likely far less wary to take a chance on crypto after Andreessen Horowitz’s stake in Coinbase equated to some $11.2 billion at the time of the direct listing’s first trades, though the stock has slid back some 30% in recent months as the crypto market has shrunk.
Some of the firm’s other major crypto bets include NBA Top Shot maker Dapper Labs which hit a $7.5 billion valuation this spring. Blockchain infrastructure startup Dfinity raised at a $9.5 billion valuation this past September. Last year, the firm led the Series A of Uniswap, which is poised to be a major player in the Ethereum ecosystem. In addition to equity investments, a16z has also made major bets on the currencies themselves.
An earlier report from Newcomer last month reported a16z was targeting a $2 billion crypto fund and that they had already unloaded some of their crypto holdings before most cryptocurrencies took a major dive in recent weeks.
Crypto Fund III will continue to be managed by GPs Chris Dixon and Katie Haun, but the firm has also begun spinning out a more robust management team around the crypto vertical.
Anthony Albanese, who joined the firm last year from the NYSE, has been appointed COO of the division. Tomicah Tillemann, who previously served as a senior advisor to now-President Joe Biden and as chairman of the Global Blockchain Business Council, will be a16z Crypto’s Global Head of Policy. Rachael Horwitz is also coming aboard as an Operating Partner leading marketing and communications for a16z crypto; leaving Google after a stint as Coinbase’s first VP of Communications as well.
A couple other folks are also coming on in advisory capacity, including entrepreneur Alex Price and a couple others who will likely be a tad helpful in regulatory maneuverings including Bill Hinman, formerly of the SEC, and Brent McIntosh, who recently served as Under Secretary of the Treasury for International Affairs.
Security researchers say at-home exercise giant Peloton and its closest rival Echelon were not stripping user-uploaded profile photos of their metadata, in some cases exposing users’ real-world location data.
Almost every file, photo or document contains metadata, which is data about the file itself, such as how big it is, when it was created, and by whom. Photos and video will often also include the location from where they were taken. That location data helps online services tag your photos or videos that you were at this restaurant or that other landmark.
But those online services — especially social platforms, where you see people’s profile photos — are supposed to remove location data from the file’s metadata so other users can’t snoop on where you’ve been, since location data can reveal where you live, work, where you go, and who you see.
Jan Masters, a security researcher at Pen Test Partners, found the metadata exposure as part of a wider look at Peloton’s leaky API. TechCrunch verified the bug by uploading a profile photo with GPS coordinates of our New York office, and checking the metadata of the file while it was on the server.
The bugs were privately reported to both Peloton and Echelon.
Peloton fixed its API issues earlier this month but said it needed more time to fix the metadata bug and to strip existing profile photos of any location data. A Peloton spokesperson confirmed the bugs were fixed last week. Echelon fixed its version of the bug earlier this month. But TechCrunch held this report until we had confirmation that both companies had fixed the bug and that metadata had been stripped from old profile photos.
It’s not known how long the bug existed or if anyone maliciously exploited it to scrape users’ personal information. Any copies, whether cached or scraped, could represent a significant privacy risk to users whose location identifies their home address, workplace, or other private location.
Parler infamously didn’t scrub metadata from user-uploaded photos, which exposed the locations of millions of users when archivists exploited weaknesses on the platform’s API to download its entire contents. Others have been slow to adopt metadata stripping, like Slack, even if it got there in the end.
Another sizable raise for a pet (cats and dogs) tracking company this morning. Austria-based Tractive has announced a $35 million Series A, led by Guidepost Growth Equity. The round is the company’s first since 2013, when its GPS-based tracker first hit the market.
Along with the funding round, the company is also announcing its official push into the U.S. market — though Tractive has had some presence here through a “soft launch” of an LTE tracker over the summer. That product apparently made the States its fastest growing market, in spite of a lack of official presence.
The funding will go toward its expansion into the U.S./North American market, along with additional scaling and headcount. For the latter, the company is already naming a new EVP of North America and a VP of marketing.
“Tractive is like a seatbelt for your dog or cat. It provides coverage when and where they need it,” said co-founder and CEO Michael Hurnaus in a release. “We designed Tractive to deliver the best possible experience, with up-to-the-second information, so that all pet parents can care for their dogs and cats the way they want and deserve — whether that means monitoring activity levels to reduce the risk of obesity or tracking a dog or cat that slipped out of the yard.”
Also new is the arrival of an upgraded tracker from the company, primarily focused on improved battery life. The big change is the use of Wi-Fi to reduce battery strain when a pet is in the home. The company says it’s able to bump up battery life up to 5x. The tracker is available for $50 in the U.S., plus a monthly subscription fee.
In February, smart pet collar maker Fi announced a $30 million Series B.