TLDR
- A16z is raising a $2 billion crypto fund with plans to close by mid-2026.
- The new fund is smaller than the firm’s $4.5 billion crypto vehicle launched in 2022.
- A16z has shifted to shorter fundraising cycles to stay flexible in changing markets.
- Farcaster returned $180 million to investors after selling its infrastructure in January.
- Some crypto venture firms are expanding into artificial intelligence and robotics.
Andreessen Horowitz is seeking $2 billion for a new crypto fund, according to Fortune. The firm plans to close the vehicle by mid-2026, sources said. The move comes as venture investors reassess digital asset strategies during a prolonged market downturn.
A16z crypto fund targets $2 billion close by 2026
A16z Crypto, the blockchain arm of Andreessen Horowitz, is raising its fifth crypto-focused fund. Fortune reported the plan on Wednesday, citing anonymous sources. The firm aims to secure $2 billion and complete fundraising by mid-2026.
The target is smaller than its $4.5 billion crypto fund raised in 2022. However, the firm has shifted to shorter fundraising cycles to stay flexible. It wants to respond faster to changing crypto market narratives.
The broader crypto market has lost over $2 trillion in total capitalization since October. Market value peaked near $4.4 trillion in early October before declining. This downturn has pressured venture investors to adjust their strategies.
Chris Dixon leads A16z Crypto and promotes a Web3 vision. In his 2024 book “Read Write Own,” he described a decentralized internet built on blockchains. He argued that users should control digital platforms and data.
Some investments have struggled to deliver expected returns. Farcaster, a decentralized social network, returned $180 million to investors in January. The company sold off its infrastructure before distributing the capital.
A16z raised over $15 billion in January for broader technology investments. The firm said it would back areas critical to securing America’s future. Those areas include AI, crypto, biology, defense, education, and health.
Crypto VCs explore AI, robotics, and stablecoins
While A16z advances its crypto fund plans, some peers are expanding into other technologies. Venture firms have narrowed their focus to stablecoins and tokenized real-world assets. They also back financial products tied to blockchain infrastructure.
Kyle Samani, co-founder of Multicoin Capital, stepped down in February. He said he would “explore new areas of technology,” including AI, longevity, and robotics. His departure marked a shift in focus at the firm.
Paradigm is also adjusting its investment strategy. The crypto venture firm is raising a $1.5 billion fund. Reports state that it plans to invest in artificial intelligence and robotics.
A16z has outlined key themes for 2026 across crypto and AI. The firm expects AI to automate cybersecurity tasks and reshape application models. It also predicts that AI models could function as app stores.
The firm stated that privacy may become “the most important moat in crypto.” It also expects prediction markets to grow larger and more sophisticated. Stablecoins may integrate further with traditional banking systems.
Fundraising data shows slower capital inflows into crypto startups. DeFiLlama reported that startups raised $895 million in February. That figure fell nearly 40% from January’s $1.47 billion total.
February’s total also trailed the $1 billion raised in February 2025. The data reflects tighter capital conditions for blockchain ventures. A16z continues its fundraising efforts as this trend persists.
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