a16z Crypto launches $2B fund, focuses on blockchain

a16z Crypto is raising a $2B fund, smaller than its last, amid a market downturn. The move shows ongoing confidence in blockchain, with the fund set to close by mid-2026 and focus solely on blockchain investments.

Andreessen Horowitz’s crypto division, a16z Crypto, is set to raise around $2 billion for its fifth investment fund, targeting a close by mid-2026. This fund is notably smaller than the previous $4.5 billion fund from 2022, reflecting a more cautious approach amid a broader crypto market downturn and tighter venture capital conditions. Despite the reduced size and ongoing market volatility, a16z’s continued commitment signals strong confidence in the long-term potential of blockchain and Web3 technologies. Since launching its first crypto fund in 2018, the firm has steadily increased its exposure to blockchain projects. The new fund will focus exclusively on blockchain investments and adopt a shorter fundraising cycle to remain agile in the rapidly evolving crypto sector. Recent investments include Kalshi, Jito, Babylon, Kairos, and Talos, further expanding a16z’s digital asset portfolio.