University of Michigan Plans Further Investment in a16z’s Crypto Fund

The University of Michigan’s endowment, which is now valued at around $12 billion, could be planning further investments in Andreessen Horowitz’s cryptocurrency fund a16z.

According to a regents meeting agenda published on Tuesday, the university already committed $3 million to Horowitz’s $300 million crypto fund in June 2018 and is now looking at follow-up commitments. However, it did not disclose an exact amount.

The meeting agenda further added that “as opportunities related to crypto networks transition from being undefined to becoming more visible and sharply defined, the need for a separate thematic fund may recede.”

Andreessen Horowitz launched the $300 million fund last year to focus on investing in cryptocurrency-related technology companies at different stages. The fund also reportedly attracted the participation from the endowment of Yale University.

Andreessen Horowitz’s general partner Chris Dixon said at the time of the launch that it “plans to invest consistently over time, regardless of market conditions,” adding: “If there is another ‘crypto winter,’ we’ll keep investing aggressively.”

Michigan’s endowment value climbed to about $12 billion last October. Its chief investment officer Erik Lundberg said at the time that the performance was “sufficient to sustain and grow the endowment in real terms, net of spending.”

Endowment and pension funds are starting to invest in the blockchain and crypto space. Just last week, two public pension funds – Fairfax County, Virginia’s Police Officer’s Retirement System, and Employees’ Retirement System – backed Morgan Creek Capital’s crypto-focused venture fund that raised $40 million.

Morgan Creek’s new fund also includes investments from a university endowment, a hospital system, an insurance company, and a private foundation, CoinDesk learned at the time.

Last week, Cambridge Associates, a pensions and endowments consultant, reportedly said that it’s time for institutional investors to consider getting into cryptocurrencies.

Michigan stadium image via Shutterstock