a16z Targets $2 Billion for Fifth Crypto Fund: Is Venture Capital Returning to Crypto?
a16z crypto, the crypto-focused enterprise capital arm of Andreessen Horowitz, is reportedly in search of about $2 billion for its fifth crypto fund.
The increase arrives because the broader crypto market endures a downturn, with enterprise capital companies additionally going through mounting strain.
a16z Crypto Dials Down Fund Size with Blockchain-Focused Round for 2026
According to Fortune, the agency goals to shut the spherical by the tip of the primary half of 2026. This fifth fund will solely give attention to blockchain investments.
The newest fund is considerably smaller than a16z crypto’s fourth $4.5 billion fund. BeInCrypto reported in 2022 that the fund was break up into $1.5 billion for seed and $3 billion for venture investments.
However, this time, a16z crypto is opting for a shorter fundraising cycle to higher capitalize on the fast-changing developments inside the crypto area.
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In 2018, a16z crypto launched its first $300 million fund and has since develop into an lively participant out there. Data from CryptoRank confirmed that in Q4 2025, it backed Kalshi and invested $50 million within the Solana staking protocol Jito. This yr the agency invested in Babylon, Kairos, and Talos.
As a Tier 1 investor with a 22.08x retail ROI, a16z holds 187 investments averaging $10-20 million per spherical, constructing some of the in depth portfolios in crypto enterprise capital.
The agency’s funding focus consists of synthetic intelligence (27.78%), prediction markets (16.67%), and API and developer instruments (11.11% every), amongst different classes.
a16z will not be the one agency elevating capital. Just final month, Dragonfly Capital closed a $650 million fund. This confirmed an ongoing institutional urge for food for crypto enterprise investing.
Crypto Venture Capital Funds Encounter ‘Identity Crisis’ Amid Market Struggles
The broader cryptocurrency market has confronted challenges, persevering with the decline that started in October. Bitcoin (BTC) is down by 16.7% year-to-date, regardless of a recent bounce-back. Other main large-cap belongings have additionally skilled struggles.
This downturn has prolonged its results to digital asset treasuries, crypto equities, and even enterprise capital funds. Bloomberg reported in early February that crypto-focused enterprise capital funds are grappling with what’s described as “an id disaster.”
According to the report, crypto-native funds had been shifting their focus towards higher-performing sectors, similar to stablecoin infrastructure and on-chain prediction markets. Some had been additionally branching into adjoining industries like fintech and artificial intelligence (AI).
“Web3 as a class is essentially uninvestable for now. People have moved on from NFTs, gaming, and the following incremental DeFi platform constructed for its personal sake. Even crypto-native VCs with dry powder are pivoting laborious towards fintech and stablecoin performs, and prediction markets. Everything else is struggling to get consideration,” Santiago Roel Santos, founder and chief government officer of crypto non-public fairness agency Inversion, said.
Yet, a16z’s ongoing dedication suggests the agency believes there are alternatives for long-term worth creation within the present atmosphere.
Whether the most recent efforts mark a flooring for crypto enterprise or just a consolidation among the many sector’s most sturdy gamers, the reply will rely largely on whether or not the present market downturn produces the form of breakout corporations that justify the capital dedicated throughout it.
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The submit a16z Targets $2 Billion for Fifth Crypto Fund: Is Venture Capital Returning to Crypto? appeared first on BeInCrypto.
