Andreessen Horowitz is reportedly doubling down on the cryptocurrency sector despite a prolonged market downturn, seeking to raise $2 billion for a new crypto-focused fund.
According to a report from Fortune published Wednesday, the venture firm’s blockchain arm, a16z Crypto, is planning to launch its fifth crypto fund and aims to close the round by mid-2026.
The proposed fund would be significantly smaller than the firm’s $4.5 billion crypto fund launched in 2022. However, the company has reportedly shifted toward shorter fundraising cycles to stay flexible as crypto market narratives evolve.
The fundraising effort comes during a broader crypto downturn that has erased more than $2 trillion in market value since the sector’s peak of roughly $4.4 trillion in early October.
The firm’s crypto strategy has been shaped by Chris Dixon, head of a16z Crypto, whose Web3 philosophy — outlined in his 2024 book Read Write Own — envisions a decentralized internet powered by blockchain-based applications.
However, not all of the firm’s investments have delivered strong returns. One example is the decentralized social network Farcaster, often described as a competitor to X, which returned $180 million to investors after selling off its infrastructure earlier this year.
Crypto VCs exploring new technology sectors
Across the venture capital industry, some crypto-focused investors have begun broadening their focus beyond digital assets.
Institutional interest on Wall Street has recently centered on stablecoins, real-world asset tokenization and crypto-based financial products. Meanwhile, several venture capital firms are also exploring opportunities in other technology sectors.
Kyle Samani, co-founder of Multicoin Capital, stepped down in February to explore emerging fields such as artificial intelligence, longevity research and robotics.
Another crypto-focused venture firm, Paradigm, is reportedly expanding into AI and robotics through its latest fund, which is seeking to raise $1.5 billion.
Earlier this year, Andreessen Horowitz also raised more than $15 billion for broader technology investments, targeting sectors it considers critical to the United States’ future. These include AI and crypto as well as areas tied to human development such as biology, healthcare, defense, public safety, education and entertainment.
A16z highlights AI and crypto as key themes for 2026
Andreessen Horowitz recently identified artificial intelligence and cryptocurrency as two major technology themes for 2026.
The firm expects AI to increasingly automate cybersecurity operations, AI models to evolve into platforms resembling app stores, and privacy to become one of the most important competitive advantages within crypto.
It also predicts that prediction markets will expand significantly and that stablecoins will become more closely integrated with traditional banking and financial systems.
Data from DeFiLlama shows that crypto startups raised about $895 million in February, down nearly 40% from the $1.47 billion raised in January and slightly below the $1 billion recorded in February 2025.
