Andreessen Horowitz invests $15m in MakerDAO start-up
Andreessen Horowitz, the US venture capital firm, has invested $15m in MakerDAO, the ethereum-based blockchain start-up responsible for the dai (DAI) stablecoin.
MakerDAO’s native token is the maker (MKR), with a market cap of around $400m – backed by ether rather than fiat currency – and rather than being mined, is created or destroyed in response to price fluctuations in the dai stablecoin.
The venture capitalist announced it had acquired 6% of the supply of MKR tokens through its a16z Crypto fund.
The $15m price tag also guarantees operating capital for Maker through further financing stages, three years of support for the MKR community and operational support from a16z.
Maker said the investment would enable it accelerate evolution, innovation and adoption of the Dai Credit System.
Tackling regulatory issues
“This is a really big deal for us because it gives us the best possible tools for tackling the main problem we’re facing: Regulation,” said MakerDAI in a blog post on Reddit.
“Getting our house in order from a US regulatory standpoint is a crucial step that will open up major partnerships with established American enterprises.
“Additionally there’s the added benefit of a16z’s marketing and business development teams that we can leverage as a force multiplier for our in-house marketing and BD teams,” the Reddit post said.
Andreessen Horowitz’s a16z Crypto fund continues to expand its blockchain and cryptocurrency investments. Last month it invested an undisclosed sum in blockchain start-up Dfinity.