Well-known crypto investor Katie Haun, who established her reputation after betting on digital assets, has raised $1.5 billion in two funds to invest in Web3 via Haun Ventures.
Haun, a former general partner at Andreessen Horowitz and co-chair of the firm's three crypto funds, set a new record by raising the largest initial fund by a single female founding partner, according to Pitchbook.
The previous record was set by Mary Meeker, a former investment bank, who raised $1.3 billion fund after a spin out from Kleiner Perkins.
Now that the fundraising is completed, Haun tweeted that "the real work begins now."
How She'll Spend It
The capital raised will be allocated to two platforms: A $500 million early stage fund and a $1 billion acceleration fund, Haun wrote in her blog post on Tuesday.
Haun was an early adopter of crypto and created one of the government’s first cryptocurrency task forces in 2014.
"In the course of that work, the vast potential of these technologies quickly became clear," she wrote. "Like any tool, they could be used for good or for bad, but we had just started to scratch the surface of the good."
During Haun's tenure at Andreessen Horowitz, she and Chris Dixon, her former partner, launched and scaled "one of the earliest and largest dedicated crypto venture franchises in the world," she wrote.
Andreessen Horowitz will be a limited partner in Haun Ventures. Dixon and Marc Andreessen, founder of the VC firm both personally contributed the fund.
Connecting the crypto world to various audiences, such as academia, business or government, generates value, Haun wrote.
So What's Web3?
Web3 is the third generation of the internet, which includes applications that are built and function on the blockchain such as crytocurrencies and NFTs, ownership certificates that can be tracked for art, video or finance applications," she wrote.
"While the origin began with financial instruments such as bitcoin, it also serves a purpose "to every industry from transportation and commerce, to fashion, sports, music, and more," she wrote.
"We think consumer demand for digitally-native experiences and goods will continue to increase. As more people embrace these products, there will be a shift in individuals’ expectations for greater control of their personal data and a new generation of creators will demand and enjoy better economics," Haun wrote.
Her Team Is a Who's Who of Tech Stars
The nine-person team of Haun Ventures includes Chris Lehane, a former Airbnb executive and Clinton administration official; Tomicah Tillemann, a former staffer for President Joe Biden; and Rachael Horwitz, who led communications teams at Twitter, Google, Facebook and Coinbase.
Multiple employees left Andreessen Horowitz with Haun for the new fund.
A smaller team allows her firm to be more “nimble” and act as “venture contributors” in addition to venture capitalists, Haun told CNBC.
“It feels, honestly, like a lot of pressure. But I think that motivates everyone on the team,” she told CNBC in her first broadcast interview since leaving Andreessen Horowitz. “Web3 is the new era of the internet, and it deserves a new era of investors.”
Haun is a board member of Coinbase, which has seen its valuation plummet by 58% from its high in 2021. She spent nearly 11 years as a former federal prosecutor and became the first female general partner at Andreessen Horowitz in 2018.
Her departure from the VC firm was a surprise to Silicon Valley, but Haun said her new venture will "collaborate closely with Andreessen Horowitz.”
The size of the fund enables her venture to invest next to other crypto investors.
“One of the unique things about our fund size makes it so that we don’t have to lead every deal, we can play well with a lot of other crypto investors. Founders don’t want a single investor on their cap table, even in the early rounds,” Haun told CNBC.
Blockchain start-ups are still attracting capital from investors and netted $25 billion from venture capitalists in 2021, an eightfold jump, according to recent data from CB Insights.