TLDR
- Andreessen Horowitz plans to raise $2 billion for its fifth dedicated cryptocurrency fund, with a target close date of mid-2026.
- This represents a significant reduction from the $4.5 billion raised for Crypto Fund 4 in 2022.
- The crypto venture capital market has experienced a dramatic contraction, declining from $86 billion in 2022 to just $7.95 billion in 2024.
- Several crypto-focused venture capitalists are pivoting toward AI and robotics sectors, though A16z maintains crypto and AI as primary focus areas for 2026.
- February 2026 saw crypto startups secure $895 million in funding, representing a nearly 40% decrease from January’s figures.
Andreessen Horowitz, commonly referred to as A16z, has commenced efforts to secure $2 billion for a fresh cryptocurrency investment vehicle. Fortune reported that the venture capital powerhouse intends to finalize this fundraising initiative by the middle of 2026, based on information from undisclosed sources.
This marks the fifth cryptocurrency-dedicated fund from A16z. Collectively, the firm has accumulated a minimum of $7.6 billion through its four previous crypto-focused investment vehicles.
The latest fund represents a considerable downsizing compared to A16z’s most recent crypto fundraising effort. Back in 2022, the company successfully closed on a massive $4.5 billion fund that was divided between seed-stage and venture-stage opportunities.
A16z’s involvement in cryptocurrency investments dates back to at least 2013. During that year, the firm provided backing to Coinbase, subsequently launching its inaugural specialized crypto fund in 2018 with $300 million in capital.
In January 2026, A16z announced it had accumulated $15 billion spanning multiple new investment vehicles. This substantial sum accounted for more than 18% of total venture capital funding allocated throughout the United States during 2025.
The wider cryptocurrency venture capital landscape has experienced a severe deceleration since 2022. During that peak year, investment firms accumulated over $86 billion distributed across 329 separate funds. This figure plummeted to merely $7.95 billion by 2024.
Investment deal volume has similarly declined. Throughout Q1 2026 thus far, there have been 97 venture capital transactions recorded. This contrasts sharply with 427 during the corresponding quarter one year earlier and 724 in Q1 2024.
Some VCs Are Moving Away From Pure Crypto
Not every crypto-focused investor is maintaining their original course. Kyle Samani, co-founder of Multicoin Capital, announced his departure in February 2026 to pursue opportunities in artificial intelligence, longevity science, and robotics.
Paradigm, another prominent crypto venture capital firm, is allegedly assembling a $1.5 billion fund that will incorporate investments in artificial intelligence and robotics technologies.
Even one of A16z’s portfolio companies, the decentralized social network Farcaster, distributed $180 million back to its investors this past January following the divestiture of its infrastructure assets.
The overall crypto market capitalization has also declined by more than $2 trillion from its approximately $4.4 trillion peak recorded in early 2025.
A16z Still Sees Upside in Crypto and AI
Notwithstanding the market contraction, A16z continues demonstrating dedication to the cryptocurrency sector. The firm has recently identified crypto and AI as its two principal investment priorities for 2026.
The investment firm anticipates stablecoins will develop stronger connections to conventional banking infrastructure. Additionally, A16z views privacy features as a crucial competitive advantage within crypto, while prediction markets are expected to expand in both scale and functionality.
Regarding artificial intelligence, A16z forecasts that AI models will evolve to operate similarly to app stores and assume greater responsibilities in cybersecurity operations.
February 2026 witnessed crypto startups raising $895 million in total funding. This figure represents a decline of almost 40% compared to the $1.47 billion secured in January and sits marginally below the $1 billion raised during February 2025.
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