The new cryptocurrency venture capital firm KRH Partners: Katie Haun's solo plan after leaving a16z

Author: Richard Lee, Chain Catcher

In the early days of cryptocurrency development, capital and investors were a major focus of the market.

In December last year, Silicon Valley crypto investment star and former a16z general partner Katie Haun announced her departure from a16z to establish her own crypto and Web3 investment fund. Since then, she has begun rapidly recruiting, and as of now, her team has grown to at least 9 members, participating in Opensea's Series C and sports NFT platform Autograph's Series B financing. Will KRH become the next Paradigm, represented by crypto-native venture capital firms that have always been favored by project parties?

Jessica Chou / Source: Fortune Magazine

According to documents from the U.S. Securities and Exchange Commission (SEC), KRH Partners was established in early 2022 and is currently named after Katie Haun's full name (Kathryn Rose Haun). According to incomplete statistics from Chain Catcher, her team has at least 9 members.

Recently, former Airbnb policy head Chris Lehane and former Polychain Capital general partner (GP) Sam Rosenblum announced their joining the team. According to a report by Fortune Magazine, when Haun left at the end of last year, she was "permitted" to take six employees from a16z, including global policy head Tomicah Tillemann and operating partner Rachael Horwitz.

According to Katie Haun's disclosure to Fortune, as of January 26, her team has made 7 investments, most of which have not yet been disclosed.

Personal Background and Team Composition

Katie Haun is known for her political background with a decade-long tenure at the U.S. Department of Justice, where she was involved in combating crypto crime.

According to CNBC, Katie Haun spent her early years abroad, attending Boston University and Stanford Law School, and later began her career as a law clerk in U.S. federal courts. Her LinkedIn page shows that since 2006, she has served as an assistant prosecutor and digital currency coordinator at the U.S. Department of Justice, focusing on investigations and prosecutions related to cybercrime, the dark web, fintech, cryptocurrency, blockchain, and anti-money laundering.

In the infamous dark web "Silk Road" case, two federal agents were "corrupted" while undercover, stealing hundreds of thousands of dollars in Bitcoin, and Katie Haun was one of the main prosecutors against them.

Afterward, Katie Haun was "poached" by a16z, becoming a general partner in June 2018 and co-founding a16z's first crypto investment fund with another partner, Chris Dixon. She has served as co-chair of all three crypto funds at a16z to date, with her investment portfolio including Opensea and NFT music platform Royal.

According to public reports, Katie Haun's contributions at a16z also extended to team recruitment and policy lobbying. Chris Dixon told Fortune in an interview email that over four years, a16z's crypto investment team expanded from two to about 50 people, with Katie Haun recruiting "most" of the members.

In terms of policy lobbying, a16z is known for providing comprehensive services from marketing to regulatory compliance for investment firms, which is also related to its talent pool. Leveraging her government connections in Washington, in the summer of 2021, Katie Haun recruited former Biden administration aide Tomicah Tillemann for a16z and initiated lobbying efforts for crypto regulation in Washington in the second half of the year, with Tillemann being a key player in that initiative.

Tomicah Tillemann (left) served as an aide to President Biden when he was a senator. Source: The New York Times

Katie Haun's ability to attract talent is also applied to her own VC. The six employees she brought from the a16z crypto team are Rachael Horwitz, Tomicah Tillemann, Nick Pacilio, James Rathmell, Kindra Mason, and Stephanie Watkins, with Rachael Horwitz serving as KRH's Chief Marketing Officer, Tomicah Tillemann continuing to handle policy matters, and Nick Pacilio as the new company's Communications Director.

Chris Lehane, who left Airbnb, will serve as KRH's Chief Strategy Officer, while former Polychain Capital GP Sam Rosenblum will be a partner and head of the deal team.

Chain Catcher incomplete statistics

This is the current personnel distribution at KRH Partners, with a team of 9 beginning to take shape. According to The Information, Haun expects her team to cap at around 20 members, suggesting that KRH may recruit more personnel in the future.

Funding Sources and Investment Strategy of KRH Partners

"One thing I learned at a16z over the past four years is that I am actually an entrepreneur." Katie Haun discussed her reasons for "leaving" in an interview with Fortune.

Unlike the large scale of a16z, Haun hopes to keep her team size smaller, stating, "We want to be agile," Haun said.

In terms of project selection, unlike a16z's focus on domestic startup teams, Haun stated that KRH Partners plans to adopt a global strategy, seeking startups outside typical entrepreneurial hubs like Silicon Valley. "I believe we can find some of the best crypto founders around the world," Haun said, "so I think one of the things my company will do is to increasingly focus on the global landscape."

In terms of post-investment services, Haun indicated that she would take a more targeted approach to determine what types of services to provide to founders, rather than offering comprehensive support.

So far, several media outlets have cited sources saying that Katie Haun plans to raise $900 million to $1 billion for her new fund. The UK Financial Times reported that Haun will establish two types of funds, one focused on early-stage crypto startups and the other on large companies and token investments, aiming to raise $300 million and $600 million for each, respectively.

Katie Haun declined to comment on these rumors during the interview. She stated that due to "legal and regulatory reasons," she was unable to comment. However, it is relatively certain that several media outlets, including The Block, reported that a16z will also collaborate with KRH as a limited partner (LP), and the Financial Times further revealed in early January that a16z has committed to invest $50 million in Haun's fund.

The Information cited sources saying that Haun will be the sole general partner (GP) of her new fund. Compared to limited partners (LPs), general partners have greater management rights and responsibilities.

Haun's Twitter profile

Currently, Katie Haun has not officially announced her new fund through public channels, and her Twitter page still describes her solo venture as "Something new." Katie Haun also told Fortune that "KRH Partners" is just a name used for legal document registration, and she does not wish to name this potentially long-lasting enterprise after herself. "I am building a franchise, and I believe that one day, others will take over," she said.

A new name and more details about this new VC may be unveiled soon. But it is certain that the wheels are already turning in secret.

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