a16z Crypto Seeks $2B Fund as VC Returns to Crypto

Andreessen Horowitz’s crypto arm, a16z crypto, is back on the fundraising track, aiming to raise around $2 billion for its fifth dedicated blockchain fund, according to sources speaking to Fortune. The firm hopes to close the raise by mid-2026.

Led by Chris Dixon, a16z crypto has steadily grown since launching its first $300 million fund in 2018, following Bitcoin’s surge to $20,000. Subsequent funds increased in size, including a $4.5 billion vehicle in 2022. This time, the firm is taking a smaller, faster approach to capture rapidly changing trends in the crypto market.

Market Turbulence Meets Regulatory Tailwinds

The fundraising comes as the crypto market remains volatile: Bitcoin has dropped nearly 50% from its October all-time high, and public crypto companies continue to struggle. Still, the regulatory environment in Washington is arguably the most favourable in the industry’s 17-year history, offering a rare boost for institutional investors.

Investments and Strategy

a16z crypto has built a portfolio of notable wins, including Anchorage, Kalshi, and Uniswap. Dixon, a leading voice in the Web3 movement, has promoted decentralised alternatives to traditional internet applications – a philosophy outlined in his 2024 book, Read Write Own.V

Not all bets have succeeded, however. Farcaster, a decentralised Twitter alternative, returned $180 million to investors after selling its infrastructure this year.

The sector has increasingly shifted toward financial products – stablecoins, tokenisation, and blockchain-wrapped assets – reflecting the market’s new “financial era.” On a recent X post, Dixon wrote: 

“Finance isn’t separate from the broader thesis; it’s part of it. It’s the foundation and proving ground for everything else.”

Dealmaking Continues Amid Fundraising

While raising capital, a16z crypto has remained active in deals. Recent moves include Babylon, a decentralised protocol for collateralising Bitcoin holdings; Kairos, a cross-platform integration tool for prediction markets; and Jito, a $50 million investment in the Solana staking protocol.

Other crypto-focused venture firms are also adjusting. Paradigm is reportedly raising up to $1.5 billion for a fund covering crypto, AI, and robotics. At the same time, Multicoin Capital’s co-founder Kyle Samani has stepped back to pursue investments outside the sector.

With this fifth fund, a16z crypto is doubling down on blockchain despite market headwinds, signalling confidence that institutional capital and a favourable regulatory climate will continue to drive opportunity in the space.