Andreessen Horowitz launched a $110M crypto fund for the "ownership economy." Variant Fund II will invest in gaming, music, and art projects using a tokenized incentive model.
- The fund is being led by Jesse Walden and Li Jin, who have previously invested in creator-economy projects like Substack and Patreon.
- The fund will continue to invest in these "passion economy" projects, specifically those built on web 3 with tokenized economic models.
- In addition to the launch, Andreessen Horowitz announced that Walden's Variant firm and Jin's Atelier Ventures would merge into Variant Fund II.
Analyst Trevor Grant's take on the ownership economy:
- Under the current model, only a small group of insiders (i.e., founders, investors, and early employees) reap the rewards from the ownership of a company.
- The broader community of users, who are often instrumental to the success of a company, are not given access to the wealth creation brought on by ownership.
- Imagine if early Uber drivers received $5,000 worth of stock when the company was young — those shares would be worth millions at IPO.
- Before tokenization, legal contracts and legacy financial infrastructure made distributed ownership at the scale unrealistic.
- Now with the aid of tokenization, companies can better align incentives toward building networks that grow bigger, faster.
- The main belief is that the next generation of products and platforms will be built, operated, and owned by their users.