What Crypto Investor Katie Haun’s Exit From Andreessen Horowitz Means

Surging public adoption of cryptocurrencies and investments in crypto-related startups this year has already forced major changes at some of the biggest venture capital firms, which have raced to catch up to VC upstarts specializing in the crypto sector. But the departure Wednesday of crypto-investment partner Katie Haun from Andreessen Horowitz, one of the earliest VC firms to bet on the sector, shows how broad and long-lasting the industry shakeout could be.

Haun, who in a short time became one of the most recognizable names in crypto, will launch her own crypto-focused investment fund, betting her star power and regulatory knowledge will earn her a seat on the best companies’ cap tables—without Andreessen Horowitz’s brand behind her. Haun isn’t the first and won’t be the last partner to leave a major VC firm for such reasons. Traditional firms that have upped their profile and investments in crypto, from Sequoia Capital to Lightspeed Venture Partners, also are at risk of losing partners who want to set up their own shop, earn more money from successful bets, and raise capital from institutional investors, which have increasingly embraced the crypto field.