Andreessen Horowitz’s crypto investment arm has returned to the fundraising market with plans for a new multibillion-dollar fund focused exclusively on blockchain startups. The firm, widely known as A16z, aims to raise about $2 billion for its fifth dedicated crypto venture vehicle, according to a Fortune report that cited confidential sources familiar with the process.
The venture capital firm hopes to complete the fundraising effort during the first half of 2026. If it works, the new vehicle will strengthen A16z's position as among the most important investors in the digital asset sector, even though there has been a big drop in venture capital activity across crypto markets.
a16z crypto is currently raising its fifth fund, according to multiple sources. The firm is targeting around $2 billion and plans to close the raise by the end of the first half of 2026, according to one of the sources. https://t.co/M53oIoBqKg
— FORTUNE (@FortuneMagazine) March 4, 2026
A smaller fund after the bull market peak
The reported $2 billion target represents a significant reduction compared with A16z’s previous crypto fund. The firm closed its fourth crypto vehicle at $4.5 billion in 2023.
That earlier fund split its capital between early-stage and later-stage investments, with $1.5 billion allocated to seed funding and $3 billion reserved for venture investments.
The new fundraising target signals a more cautious approach as the digital asset sector adjusts to a weaker investment environment. Venture capital firms across the industry have reduced fundraising goals following the cooling of crypto markets after the highs reached during the previous cycle.
Still, the new vehicle remains substantial compared with many other recent funds. Dragonfly Capital closed a $650 million crypto investment fund last month.
A long history of crypto investment
Andreessen Horowitz has played a vital role in bringing institutional venture capital into blockchain startups. The firm’s crypto involvement dates back more than a decade.
In 2013, the venture firm made an early strategic investment in Coinbase, years before the exchange became recognizable company in the digital asset industry.
That early bet helped establish the firm’s reputation as a leading crypto backer and paved the way for its first dedicated crypto fund in 2018. That initial vehicle launched with $300 million in committed capital.
Since then, A16z has expanded its crypto investment portfolio significantly. The firm has backed several prominent blockchain projects and infrastructure companies, including decentralized exchange Uniswap, digital asset platform Anchorage Digital, and Solana-based staking protocol Jito Network.
A16z has built one of the largest venture portfolios in the sector. The firm holds roughly 187 investments across the digital asset ecosystem, with many funding rounds averaging between $10 million and $20 million.
In recent quarters, the venture firm has continued to support blockchain startups despite the broader market slowdown. CryptoRank data shows that A16z invested $50 million in the Solana staking protocol Jito and backed projects such as Babylon, Kairos, and Talos.
Venture capital slowdown across crypto
The fundraising effort arrives during a challenging period for crypto venture capital. The digital asset sector has experienced a sharp drop in funding activity after the investment surge that accompanied the previous bull market.
During the peak year of 2022, cryptocurrency investment funds collectively raised more than $86 billion across 329 funds. That figure represented the highest level of capital formation in the sector’s history.
By contrast, the environment changed dramatically in the following years. Venture capital allocated to crypto startups dropped sharply as market sentiment weakened and asset prices declined.
Bitcoin has also faced a difficult start to the year. The asset remains down about 16.7% year-to-date despite a recent rebound, according to TradingView data.
The downturn has affected venture capital funds as well. Bloomberg reported earlier this year that crypto-focused funds face what it described as an “identity crisis,” as some investors reconsider how heavily they should concentrate on digital assets.
Venture firms explore adjacent sectors
Some venture firms have responded by expanding their investment mandates beyond blockchain startups. Many crypto-focused funds have begun exploring adjacent sectors such as fintech, stablecoin infrastructure, and artificial intelligence.
“Web3 as a category is largely uninvestable for now. People have moved on from NFTs, gaming, and the next incremental DeFi platform built for its own sake. Even crypto-native VCs with dry powder are pivoting hard toward fintech and stablecoin plays, and prediction markets. Everything else is struggling to get attention,” Santiago Roel Santos, founder and chief executive officer of crypto private equity firm Inversion, said.
Andreessen Horowitz has also increased its interest in artificial intelligence and developer tools across its broader investment strategy. However, the firm continues to maintain a dedicated crypto investment arm led by general partner Chris Dixon.
In a recent post on X, Dixon described the current stage of blockchain development as a transition toward what he called the “financial era” of crypto.
He wrote that blockchain-based financial systems could serve as the infrastructure layer for a broader decentralized internet.
Institutional investors still prepare for the next cycle
Despite the slower pace of venture deals, large investors continue to prepare for the next wave of blockchain startups. The reported A16z fund illustrates that some venture firms still see long-term opportunity in digital asset infrastructure.
The firm’s ongoing fundraising effort suggests that major venture investors expect new blockchain companies to emerge during the current market cycle. Many investors believe that downturns often create the conditions for foundational technology companies to develop before the next expansion phase.
Whether the latest fund marks the start of renewed venture investment or a consolidation among the largest firms remains uncertain. The outcome will depend on whether new blockchain startups demonstrate the growth and adoption needed to justify continued venture capital support.
Anastasiia G
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