TLDR
- Andreessen Horowitz seeks to raise $2 billion for a fifth dedicated cryptocurrency fund with a target close date in mid-2026.
- The fundraising goal represents a significant reduction from the $4.5 billion secured for Crypto Fund 4 in 2022.
- Venture capital flowing into crypto has plummeted from $86 billion in 2022 to just $7.95 billion in 2024.
- Competing venture firms are shifting focus toward artificial intelligence and robotics, though A16z maintains crypto and AI as priority investment areas for 2026.
- February 2026 saw crypto startups secure $895 million, representing a nearly 40% decline from the previous month.
Andreessen Horowitz, commonly referred to as A16z, has initiated efforts to raise $2 billion for a fresh cryptocurrency-focused investment vehicle. Sources familiar with the matter told Fortune the venture capital firm expects to complete the fundraising by the middle of 2026.
The upcoming vehicle marks A16z’s fifth dedicated cryptocurrency fund. Collectively, the firm has accumulated at least $7.6 billion through its prior four crypto-specific investment funds.
The latest fundraising effort represents a substantial decrease compared to A16z’s previous crypto capital raise. Back in 2022, the firm successfully closed a massive $4.5 billion fund that was divided between early-stage seed investments and larger venture deals.
A16z’s involvement in cryptocurrency investing dates back to at least 2013. During that year, the firm made an investment in Coinbase, and subsequently launched its inaugural dedicated crypto fund in 2018 with $300 million in committed capital.
Earlier in January 2026, A16z announced it had secured $15 billion spanning multiple new investment funds. This substantial sum accounted for over 18% of total venture capital dollars committed across the United States throughout 2025.
The cryptocurrency venture capital landscape has experienced a dramatic contraction since 2022. During that peak year, investment firms raised over $86 billion across 329 different funds. By 2024, that figure had collapsed to merely $7.95 billion.
Investment deal flow has similarly declined. Through Q1 2026 to date, only 97 venture investments have been recorded. This contrasts sharply with 427 deals during the equivalent period one year prior and 724 deals in Q1 2024.
Some VCs Are Moving Away From Pure Crypto
Not every cryptocurrency-focused investor is maintaining their current strategy. Kyle Samani, co-founder of Multicoin Capital, stepped down from his position in February 2026 to pursue opportunities in artificial intelligence, longevity research, and robotics.
Venture capital firm Paradigm, another major player in crypto investing, is reportedly working to raise a $1.5 billion fund that will broaden its mandate to include artificial intelligence and robotics investments.
Even one of A16z’s portfolio companies, decentralized social network Farcaster, distributed $180 million back to its investors this past January following the sale of its infrastructure assets.
The overall crypto market capitalization has shed more than $2 trillion from its approximate $4.4 trillion peak recorded in early 2025.
A16z Still Sees Upside in Crypto and AI
Notwithstanding the market contraction, A16z continues to demonstrate strong conviction in the cryptocurrency sector. The firm recently identified crypto and AI as its two principal investment focus areas for 2026.
The venture capital firm anticipates stablecoins will develop stronger connections to conventional banking systems. Additionally, it views privacy features as an important competitive advantage in cryptocurrency applications, and expects prediction markets to expand significantly in both scale and functionality.
Regarding artificial intelligence, A16z predicts 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% from the $1.47 billion secured during January and falls slightly short of the $1 billion raised in February 2025.
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