Discussion around shutdowns among projects backed by Andreessen Horowitz, or a16z, has intensified, but RootData’s funding data shows the firm does not have the highest inactivity rate in the sample. After deduplicating projects, RootData found that Coinbase Ventures, YZi Labs, Pantera Capital, a16z and Paradigm together covered 993 distinct portfolio companies, of which 216 were marked inactive, for a combined rate of 21.75%.
By firm, Pantera Capital posted the highest inactivity rate at 24.76% with 51 inactive projects out of 206. Coinbase Ventures followed at 22.69% with 98 out of 432, while a16z stood at 20.09% with 43 out of 214. Paradigm came in at 19.49% with 23 out of 118, and YZi Labs had the lowest rate in the group at 13.56% with 32 out of 236.
RootData also showed that among 148 projects led by a16z, 29 were marked inactive, equal to 19.59%. Those included Linera, which recently announced a shutdown, and Universal, which said it had entered a wind-down process. The figures suggest that even lead backing from a top-tier firm does not remove operational risk for crypto projects.
ChainCatcher reported that discussion has continued to build around shutdowns among projects backed by a16z.
According to RootData funding data, after deduplicating projects, Coinbase Ventures, YZi Labs, Pantera Capital, a16z and Paradigm collectively covered 993 distinct portfolio projects. Of those, 216 were marked inactive, for a combined rate of 21.75%.
Inactive project rates across five firms
Broken down by investor, Pantera Capital recorded an inactivity rate of 24.76% (51/206), Coinbase Ventures stood at 22.69% (98/432), a16z at 20.09% (43/214), Paradigm at 19.49% (23/118), and YZi Labs at 13.56% (32/236).
Although a16z has been at the center of the recent discussion, it was not the firm with the highest inactive-project rate in this sample.
a16z-led projects
Among 148 projects led by a16z, 29 were marked inactive, equal to 19.59%. The list includes Linera, which recently announced it would shut down, and Universal, which said it had entered a wind-down process.
The data indicates that lead investment from a top-tier firm does not eliminate project operating risk.
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