Andreessen Horowitz (a16z) is looking to raise around 2 billion dollars with its fifth dedicated crypto fund, according to Fortune. The closing is expected by the end of the first half of 2026. This makes the new fund significantly smaller than its predecessor. Fund IV had mobilized 4.5 billion dollars back in 2022.
Chris Dixon, managing partner of a16z's crypto division, leads the fund. He is pursuing a shorter fundraising cycle to react more quickly to trend shifts in the crypto market. Fund V focuses exclusively on blockchain investments. In its broader 15-billion-dollar round from January 2026, a16z had distributed crypto allocations across multiple funds. These included the App Fund, the Infrastructure Fund, and the Growth Fund. The new crypto fund is a separate vehicle from those.
Subscribe to our newsletter
The best articles of the week, directly delivered into your mailbox.
From 300 million to 4.5 billion and back
a16z has invested in the crypto sector since 2013. Dedicated funds have existed since 2018. Initially, the first crypto fund comprised 300 million dollars. Fund II followed in 2020 at 515 million. Starting in 2021, volume accelerated sharply. Fund III reached 2.2 billion dollars. Fund IV then marked the all-time high at 4.5 billion dollars in 2022.
Performance varies considerably by vintage. According to PitchBook, Fund I delivered a net DPI of 5.4x for its investors. By contrast, the fourth fund stands at a net TVPI of 1.8x. At 2 billion dollars, the fifth fund therefore signals a deliberate calibration toward smaller tickets, faster cycles, and more concentrated bets.
Recent investments point to the direction. a16z put 50 million dollars into the Solana staking protocol Jito. Additionally, the firm participated in Babylon, a Bitcoin collateralization project, and Kairos, a prediction markets tool. At the same time, the portfolio shed legacy positions. Farcaster, a social media protocol backed by a16z, returned the entire 180 million dollars to investors. Previously, the protocol had sold its infrastructure.
Strategic focus on financial applications
Over the past two years, the crypto industry has shifted strategically. Instead of Web3 decentralization applications, financial projects like stablecoins, tokenization, and prediction markets now dominate investor interest. Dixon sees no contradiction with the overarching thesis.
"Finance is not separate from the overarching thesis; it is part of it. It is the foundation and the proving ground for everything else." - Chris Dixon, Managing Partner, a16z crypto
Currently, the industry benefits from the most favorable regulatory environment in Washington D.C. in its 17-year history. For venture capitalists, this is a key factor. Regulatory clarity lowers the uncertainty premium on crypto investments. Still, this holds true despite a significant price correction. Bitcoin has lost nearly half its value since its all-time high in October 2025.
Competition among crypto VC firms intensifies
a16z is not the only crypto VC firm seeking fresh capital. Paradigm, founded by Fred Ehrsam and Matt Huang, is targeting a new round of up to 1.5 billion dollars. However, Paradigm is also expanding its focus for the first time systematically into AI and robotics. The firm manages approximately 12.7 billion dollars.
Haun Ventures, founded by former a16z partner Katie Haun, most recently raised 1 billion dollars across two funds. In total, at least three major investors are competing simultaneously for capital commitments from institutional allocators.
Still, the contrast in strategy is notable. Paradigm is diversifying away from pure blockchain bets. By contrast, a16z deliberately restricts Fund V to crypto. After the 15-billion-dollar round in January, Andreessen Horowitz's total assets amount to over 90 billion dollars. Its crypto division accounts for a comparatively small share.
VC market as a tailwind
In 2025, the North American venture capital market recorded its strongest year in four years at 280 billion dollars. This represents a 46 percent increase over the previous year. For fundraising rounds in the crypto space, this creates a favorable environment. Institutional investors are generally allocating more capital to venture funds.
Accordingly, the challenge for a16z lies less in raising capital than in deployment strategy. Fund IV at 4.5 billion dollars was created during a phase of significantly higher valuations in the crypto sector. A smaller Fund V allows for more targeted investments at lower entry prices. Moreover, the shortened cycle reduces the time span between fundraise and deployment. In a volatile market, that can offer advantages.
a16z is targeting the closing of Fund V by the end of the first half of 2026. An official confirmation of the fund size is still pending.
