Key Points
- Andreessen Horowitz is pursuing $2 billion in capital for its fifth cryptocurrency-focused fund, with a target close date of mid-2026.
- This fundraise represents a significant reduction from the $4.5 billion secured for Crypto Fund 4 in 2022.
- Cryptocurrency venture capital activity has plummeted dramatically, declining from $86 billion in 2022 to just $7.95 billion in 2024.
- Several crypto-focused venture capital firms are pivoting toward AI and robotics investments, though A16z continues prioritizing crypto alongside AI for 2026.
- February 2026 saw crypto startups secure $895 million in funding, representing a nearly 40% decline from January’s figures.
Venture capital powerhouse Andreessen Horowitz, commonly referred to as A16z, is in the process of securing $2 billion for a fresh cryptocurrency investment vehicle. According to Fortune’s report, which cited individuals familiar with the matter, the firm anticipates completing this capital raise by the middle of 2026.
LATEST: ⚡ Andreessen Horowitz’s crypto wing, a16z crypto, is reportedly raising its fifth fund, aiming for around $2 billion, according to Fortune. pic.twitter.com/4T4K8Bprg0
— CoinMarketCap (@CoinMarketCap) March 5, 2026
The upcoming vehicle marks A16z’s fifth dedicated cryptocurrency fund. Collectively, the venture firm has amassed at least $7.6 billion through its four preceding crypto-focused investment funds.
The latest fundraising target represents a substantial contraction compared to A16z’s previous cryptocurrency capital raise. During 2022, the company successfully closed a massive $4.5 billion fund that was divided between seed-stage and venture-stage investments.
A16z’s involvement in the cryptocurrency ecosystem dates back to at least 2013. During that year, the firm made an early investment in Coinbase, subsequently establishing its inaugural dedicated crypto fund in 2018 with $300 million in capital.
During January 2026, A16z announced it had successfully raised $15 billion spanning multiple new investment vehicles. This substantial figure accounted for more than 18% of the total venture capital funding allocated throughout the United States during 2025.
The cryptocurrency venture capital landscape has experienced a dramatic contraction since 2022. During that peak year, investment firms accumulated more than $86 billion distributed across 329 separate funds. By 2024, that amount had collapsed to merely $7.95 billion.
Investment transaction volume has similarly declined. Throughout Q1 2026, the market has witnessed just 97 venture capital investments thus far. This contrasts sharply with 427 deals during the equivalent quarter one year earlier and 724 transactions in Q1 2024.
Certain Venture Firms Are Pivoting Beyond Cryptocurrency
Not every crypto-oriented investor is maintaining their exclusive focus. In February 2026, Multicoin Capital co-founder Kyle Samani resigned from his position to pursue opportunities in AI, longevity science, and robotics.
Cryptocurrency-focused venture firm Paradigm is also allegedly assembling a $1.5 billion fund with an expanded mandate encompassing 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 sale of its infrastructure assets.
The aggregate crypto market capitalization has also contracted by more than $2 trillion from its approximately $4.4 trillion peak reached in early 2025.
A16z Maintains Bullish Outlook on Crypto and AI
Notwithstanding the market contraction, A16z continues demonstrating strong conviction in the cryptocurrency sector. The investment firm recently designated crypto and AI as its dual primary investment focus areas for 2026.
The firm anticipates stablecoins will develop stronger connections to conventional banking infrastructure. Additionally, it views privacy as an emerging critical differentiator within crypto, and expects prediction markets to expand significantly in both scale and application.
Regarding artificial intelligence, A16z projects AI models will evolve to operate similarly to app stores while simultaneously assuming greater cybersecurity responsibilities.
Throughout February 2026, cryptocurrency startups secured $895 million in funding. This represents nearly a 40% decrease from the $1.47 billion raised during January and sits marginally below the $1 billion raised in February 2025.
