a16z Crypto is raising its fifth crypto-focused fund with a target of about $2 billion, with fundraising expected to wrap up by mid-2026. The move shows the firm is still committing capital to the sector, even as much of the venture market has grown more selective. The contrast with its prior vehicle is sharp: a16z’s fourth crypto fund, launched in 2022, totaled $4.5 billion.
A smaller fund with a faster cycle
According to the source material, a16z’s rationale is not a loss of conviction but a change in structure. The firm is said to prefer shorter fundraising cycles so it can respond more quickly to shifts in crypto narratives, rather than committing a very large pool of capital to one market phase. That adjustment comes after a severe drawdown across digital assets.
The crypto market has lost more than $2 trillion from its roughly $4.4 trillion peak last October. Pressure has also shown up inside a16z’s portfolio. Farcaster, described in the source as a decentralized social platform positioned as a Web3 version of X, sold its infrastructure in January and returned $180 million to investors.
Other crypto VCs are widening their focus
While a16z remains in crypto, several peers are looking beyond it. Multicoin Capital co-founder Kyle Samani stepped down in February and said he would explore new technology areas including AI, longevity, and robotics. Paradigm has also reportedly expanded its investment scope into AI and robotics, and its latest fund is targeting $1.5 billion.
Haun Ventures, founded by former a16z partner Katie Haun, is also in the market with a new fund, though the source says fundraising has been slower than expected. Taken together, the pattern is clear. Some firms are staying in crypto but concentrating on stablecoins, tokenized real-world assets, and financial products, while others are allocating attention to AI and robotics instead.
a16z stays in, but with a more restrained check size
Chris Dixon, who leads a16z Crypto, laid out a long-term case for decentralized networks in his 2024 book Read Write Own. Even so, the latest fundraising target suggests a more measured approach than the previous cycle. a16z is still backing crypto with real capital, but the step down from $4.5 billion to $2 billion shows that conviction now comes with tighter sizing and more discipline.