The American VC firm stated that they have worked with the Compound team for more than two years and believe strongly in their abilities, both in business and technology.
Although the stake in the company was not disclosed, a source close to the deal claimed that the investment put Compound Finance at around a $90 million valuation.
How will Compound Finance use the investment?
The lending platform is already flourishing, with over $100 million worth of assets currently on the platform.
Founder Robert Leshner says that the investment will assist with new plans to bring Compound Finance to the average Joe, rather than its current niche of crypto-savvy people.
Cryptocurrency holders anywhere will eventually be able to seamlessly lend their assets via the Compound protocol, without having to move their coins off-exchange.
What is Compound Finance?
The platform pools together users’ Ethereum-based assets, and lends them out at an automatically-adjusted floating rate.
These rates – especially on US dollar-pegged stablecoins – have typically outperformed yields from traditional savings accounts.
About Andreessen Horowitz
Andreessen Horowitz is a venture capital firm from the United States.
It was founded by Marc Andreessen and Ben Horowitz in 2009, and specializes its investments in the technology sector.
According to Crunchbase.com, they currently have $2.7 billion under management, and invest anywhere from seed to growth.
The firm has been involved in the blockchain and cryptocurrency space for some time, and announced a launch of a “free crypto startup school” earlier this month.
Alejandro is a New Zealand-based trader and writer who has been involved in the cryptocurrency and blockchain space since early 2016. Being extremely passionate about this emerging technology, he has written content for a myriad of projects and news outlets.