Another University Endowment Invests in Crypto Fund: 2019 is the Year of Institutions
The University of Michigan’s $11.9 million endowment fund has plans to increase its stakes in a crypto fund managed by Andreessen Horowitz.
The public university said in its Regents Communication agenda that it was looking to make additional investments into the California-based venture capital firm’s CNK Fund I. Earlier, in June 2018, the endowment had committed $3 million to the same fund. However, this time, it didn’t reveal the number it plans to invest.
University of Michigan’s Endowment invested in a16z crypto back last year but has approved follow on investment recently. The rationale listed below I find interesting and bullish for the ecosystem: pic.twitter.com/H7cMLklew6
— David Nage
(@DavidJN79) February 22, 2019
CNK invests in startups involved in the cryptocurrency technology at “seed, venture and growth stage” levels. Kevin Hegarty, the chief financial officer at the University of Michigan, wrote that crypto recently became “an important area of innovation and entrepreneurship” that explains converged attention. He said that the cryptocurrency technology was becoming more visible and understandable compared to earlier.
“Crypto is currently regarded as a distinct type of technology by entrepreneurs, funding sources, and developers. By creating a separate fund, AH hopes [to put itself in a better position] within this community that would be the case by continuing to invest through its general IT funds.”
Traditional Funds and Crypto
The University of Michigan’s investment comes amidst growing speculation about institutional investments in the cryptocurrency space. Earlier this week, two Virginia pension funds invested undisclosed sums into Morgan Creek Digital’s $40 million venture fund. The same fund also attracted investment from an insurance company, a university endowment fund, and a private foundation, Anthony Pompliano, the founder of Morgan Creek Digital, confirmed.
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