Andreessen Horowitz Leads $55 Million Investment in LayerZero, Expanding Its Web3 Portfolio

The investment was disclosed in an April 17 X post by Ali Yahya, a general partner in the firm.

Venture capital firm Andreessen Horowitz, or a16z, has invested an additional $55 million in LayerZero, a Web3 company that runs a crosschain messaging protocol, according to a Monday X post by Ali Yahya, a general partner at the firm.

A16z’s new investment was disclosed as part of a broader note by Yahya reflecting on the firm’s thesis on Web3. He highlighted the firm’s belief in the convergence of technologies like artificial intelligence, cryptocurrency, and biology.

"We see a future where value flows seamlessly across protocols, chains, and modalities—and we’re excited to be investing in the vanguard of this convergence," he wrote.

The firm’s investments in LayerZero and Phantom highlight this thesis, showcasing the firm’s interest in startups building chain-agnostic products and protocols.

A16z’s previous investments in LayerZero include an initial investment in March 2022 and a subsequent investment during LayerZero’s Series B funding round in April 2023. The companies have not disclosed the funding round’s valuation.

The Canada-based LayerZero was valued at $3 billion during its Series B funding round, which saw participation from 33 investors. In addition to a16z, Circle Ventures, OKX Ventures, OpenSea Ventures, Sequoia Capital, and many others participated at the time.

In January 2025, LayerZero reached a settlement with the FTX Estate over a long-running dispute stemming from allegations that it exploited the exchange’s liquidity crisis by “negotiating a fire-sale transaction,” according to the Estate. In June 2024, LayerZero launched its own token, LayerZero (ZRO).

Crosschain protocols, chain-agnosticism gain traction

Crosschain messaging protocols allow programs to share information across ecosystems and can be a critical function for decentralized applications (DApps) or traders who want seamless swaps across blockchains.

Some protocols competing in the same space as LayerZero include Wormhole, Stargate, Superbridge, Connext, and many others.

Wormhole may be one of the largest competitors to LayerZero, having raised $225 million at a $2.5 billion valuation in November 2023. Like LayerZero, Wormhole hosted an airdrop for its token, Wormhole (W), although the airdrop attracted scammers and spoof tokens. Chainlink also has a crosschain interoperability protocol that allows for messaging between blockchains.

More and more companies are realizing the value of being omnichain or at least chain-agnostic. Phantom, which at first was a Solana-centric wallet, now supports six major blockchains, including Bitcoin and Ethereum. Magic Eden, an NFT-infrastructure company, also started as Solana-centric but has launched marketplaces for multiple blockchains now.