Andreessen Horowitz launches fifth crypto fund while competitors shift focus to emerging technologies
Andreessen Horowitz's crypto division is working to secure $2B in funding through mid-2026 amid an industry-wide transition from Web3 toward stablecoins, real-world asset tokenization and artificial intelligence in finance.
Despite experiencing a significant market correction, venture capital powerhouse Andreessen Horowitz continues its commitment to cryptocurrency investments, pursuing $2 billion in capital for its newest crypto-focused fund.
The blockchain investment division of Andreessen Horowitz, known as A16z Crypto, has initiated fundraising efforts for its fifth cryptocurrency-focused fund with an anticipated closing date by mid-2026, Fortune reported on Wednesday, referencing confidential sources familiar with the matter.
While this newest fundraising effort represents a notable decrease from the firm's preceding $4.5 billion fund established in 2022, the organization has adopted a strategy involving shorter fundraising periods to maintain agility in response to the constantly evolving narratives within the cryptocurrency sector.
This fundraising initiative unfolds against the backdrop of a cryptocurrency bear market that has witnessed the elimination of over $2 trillion from the aggregate market capitalization since reaching approximately $4.4 trillion at its zenith in early October.
Chris Dixon, who leads A16z crypto, outlined his Web3 vision in his 2024 publication, "Read Write Own," describing a decentralized internet ecosystem where applications are constructed on blockchain technology.
However, a substantial portion of these investment bets have failed to deliver expected returns, with the most notable example being Farcaster, a decentralized alternative to X (Twitter), which returned $180 million to its backers following the sale of its infrastructure assets in January.
Crypto VCs exploring non-crypto tech
Financial industry cryptocurrency enthusiasts have recently concentrated their attention on stablecoins, the tokenization of real-world assets, and various financial instruments, with numerous venture capital firms aligning themselves with this strategic pivot. Additionally, several investors have begun exploring opportunities in alternative technology sectors.
Kyle Samani, who co-founded the investment firm Multicoin Capital, announced his departure in February with intentions to "explore new areas of technology," specifically mentioning artificial intelligence, longevity science, and robotics as areas of interest.
Concurrently, cryptocurrency-focused venture capital firm Paradigm has announced its expansion into the artificial intelligence and robotics sectors through its most recent fund, which aims to secure $1.5 billion in capital, according to reports published in late February.
In January, A16z successfully raised over $15 billion designated for investment in companies and technological innovations the firm considers essential to safeguarding America's future competitiveness, specifically citing AI and cryptocurrency while encompassing technologies in "key areas that generate human flourishing," which include biology, healthcare, national defense, public safety, educational systems, and entertainment industries.
A16z sees opportunity in AI, crypto in 2026
In recent communications, A16z identified cryptocurrency and artificial intelligence as primary investment themes for 2026, projecting that AI will automate cybersecurity operations, AI models will evolve into app stores, privacy will emerge as the "most important moat in crypto," prediction markets will grow "bigger, broader, and smarter," and stablecoins will achieve deeper integration with conventional banking and financial systems.
Data from DeFiLlama's fundraising aggregator indicates that cryptocurrency startups secured $895 million throughout February, representing a decline of almost 40% compared to the $1.47 billion obtained during the preceding month and slightly below the $1 billion raised in February 2025.
