Key Highlights
- Andreessen Horowitz pursues $2 billion for crypto fund number five, with a target close date in mid-2026.
- This fundraising effort represents a smaller scale compared to the $4.5 billion Crypto Fund 4 secured in 2022.
- Venture investment in cryptocurrency projects declined dramatically, falling from $86 billion in 2022 to $7.95 billion in 2024.
- Multiple crypto venture firms have begun allocating resources to AI and robotics sectors, while A16z maintains focus on crypto and AI for 2026.
- February 2026 saw crypto startups secure $895 million, representing nearly 40% less than the previous month’s total.
Andreessen Horowitz, widely recognized as A16z, has initiated fundraising for a $2 billion cryptocurrency-focused investment vehicle. The venture capital firm aims to complete this capital raise by mid-2026, according to Fortune’s report based on confidential sources.
This fundraising represents the fifth cryptocurrency-dedicated fund from A16z. The firm’s previous four crypto-focused funds accumulated at least $7.6 billion in total capital.
The current fundraising target shows a significant reduction from A16z’s most recent crypto capital raise. During 2022, the firm successfully closed a $4.5 billion fund allocated across seed-stage and venture-stage investments.
A16z began its cryptocurrency investment activities in 2013 at the latest. The firm made its initial bet on Coinbase that year, subsequently establishing its first dedicated crypto fund in 2018 with $300 million in capital.
During January 2026, A16z announced it had secured $15 billion across multiple new investment vehicles. This aggregate amount accounted for more than 18% of 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 across 329 distinct funds. This figure plummeted to $7.95 billion by 2024.
Transaction volume has similarly declined. Through Q1 2026, venture investors have completed 97 cryptocurrency investments. This contrasts with 427 deals during the equivalent quarter one year earlier and 724 transactions in Q1 2024.
Multiple VC Firms Shifting Resource Allocation Beyond Crypto
Several prominent cryptocurrency investors have begun diversifying their focus areas. Kyle Samani, co-founder of Multicoin Capital, departed his position in February 2026 to pursue opportunities in artificial intelligence, longevity science, and robotics.
Crypto investment firm Paradigm has reportedly commenced fundraising for a $1.5 billion vehicle that will incorporate artificial intelligence and robotics alongside cryptocurrency investments.
Farcaster, a decentralized social platform backed by A16z, returned $180 million to its investors during January following the divestiture of its infrastructure assets.
The aggregate crypto market capitalization has decreased by more than $2 trillion from its approximately $4.4 trillion peak reached in early 2025.
A16z Maintains Conviction in Crypto and AI Sectors
Despite the challenging market environment, A16z continues demonstrating commitment to cryptocurrency investments. The firm recently identified crypto and AI as its primary investment focus areas for 2026.
The firm anticipates stablecoins will develop stronger connections to conventional banking infrastructure. A16z also identifies privacy features as crucial competitive advantages within crypto, while expecting prediction markets to expand in both scale and application.
Regarding artificial intelligence, A16z forecasts that AI models will operate similarly to app store ecosystems and assume expanded roles in cybersecurity operations.
Cryptocurrency startups secured $895 million during February 2026. This represents almost 40% less than the $1.47 billion raised during January and falls slightly below the $1 billion raised in February 2025.
