TLDR
- Andreessen Horowitz seeks $2 billion for a fifth dedicated cryptocurrency fund with a mid-2026 target closing date.
- This represents a significant reduction from the firm’s 2022 fundraise of $4.5 billion for Crypto Fund 4.
- Investment in crypto ventures has plummeted from $86 billion in 2022 to just $7.95 billion in 2024.
- While competing venture firms pivot toward AI and robotics, A16z maintains its focus on both crypto and artificial intelligence for 2026.
- February 2026 saw crypto startups secure $895 million, representing a nearly 40% decline from January’s figures.
Venture capital powerhouse Andreessen Horowitz, widely referred to as A16z, has embarked on raising $2 billion for a cryptocurrency-focused fund. Sources familiar with the matter told Fortune the firm aims to complete this fundraising effort by the middle of 2026.
LATEST: ⚡ Andreessen Horowitz’s crypto wing, a16z crypto, is reportedly raising its fifth fund, aiming for around $2 billion, according to Fortune. pic.twitter.com/4T4K8Bprg0
— CoinMarketCap (@CoinMarketCap) March 5, 2026
The upcoming vehicle marks A16z’s fifth specialized crypto investment fund. Combined with its four previous crypto-dedicated funds, the firm will have accumulated at least $7.6 billion in commitments for blockchain and digital asset investments.
The scale of this latest fund represents a substantial pullback compared to A16z’s most recent crypto capital raise. Two years ago in 2022, the venture firm successfully closed on $4.5 billion, which was divided between seed-stage and later-stage venture opportunities.
A16z’s involvement in cryptocurrency dates back to at least 2013 when it participated in backing Coinbase. The firm later established its inaugural standalone crypto fund in 2018, launching with $300 million in committed capital.
Early in 2026, A16z announced it had successfully raised $15 billion spanning multiple investment vehicles. This substantial sum accounted for more than 18% of total venture capital funds allocated throughout the United States during 2025.
The cryptocurrency venture capital landscape has contracted dramatically since its 2022 peak. During that year, investment firms collectively raised over $86 billion across 329 separate funds. That figure collapsed to merely $7.95 billion by 2024.
Investment transaction volume has similarly declined. Through the first quarter of 2026, only 97 venture deals have been completed. This stands in stark contrast to 427 investments during the same period last year and 724 deals in Q1 2024.
Some VCs Are Moving Away From Pure Crypto
The commitment to cryptocurrency investing isn’t universal among venture capitalists who previously focused on the sector. In February 2026, Multicoin Capital co-founder Kyle Samani announced his departure to pursue opportunities in artificial intelligence, longevity science, and robotics.
Paradigm, another prominent crypto venture firm, is reportedly in the process of raising a $1.5 billion fund with an expanded mandate that includes artificial intelligence and robotics investments.
Even within A16z’s portfolio, there are signs of struggle. Farcaster, a decentralized social networking platform backed by the firm, returned $180 million to its investors this past January following the sale of its infrastructure assets.
The overall crypto market capitalization has declined by more than $2 trillion from its approximate peak of $4.4 trillion recorded in early 2025.
A16z Still Sees Upside in Crypto and AI
Notwithstanding the challenging market conditions, A16z continues demonstrating conviction in the cryptocurrency sector. The firm has publicly identified both crypto and artificial intelligence as its primary investment priorities for 2026.
A16z anticipates stablecoins will develop stronger connections to conventional banking infrastructure. The firm also believes privacy features will serve as crucial competitive advantages in crypto applications, while prediction markets are expected to expand significantly in both scale and application.
Regarding artificial intelligence, A16z projects that AI models will evolve to operate similarly to app store ecosystems and assume greater responsibilities in cybersecurity applications.
During February 2026, cryptocurrency startups collectively raised $895 million in funding. This figure represents approximately a 40% decrease from the $1.47 billion secured during January and sits marginally below the $1 billion raised in February 2025.
