a16z crypto, the crypto-focused enterprise capital arm of Andreessen Horowitz, is reportedly in search of about $2 billion for its fifth crypto fund.
The elevate arrives because the broader crypto market endures a downturn, with enterprise capital companies additionally dealing with mounting strain.
a16z Crypto Dials Down Fund Dimension with Blockchain-Targeted Spherical for 2026
Based on Fortune, the agency goals to shut the spherical by the tip of the primary half of 2026. This fifth fund will completely deal with blockchain investments.
The most recent fund is considerably smaller than a16z crypto’s fourth $4.5 billion fund. BeInCrypto reported in 2022 that the fund was cut up into $1.5 billion for seed and $3 billion for enterprise investments.
Nevertheless, this time, a16z crypto is choosing a shorter fundraising cycle to raised capitalize on the fast-changing tendencies inside the crypto area.
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In 2018, a16z crypto launched its first $300 million fund and has since develop into an lively participant out there. Information from CryptoRank confirmed that in This autumn 2025, it backed Kalshi and invested $50 million within the Solana staking protocol Jito. This yr the agency invested in Babylon, Kairos, and Talos.
As a Tier 1 investor with a 22.08x retail ROI, a16z holds 187 investments averaging $10-20 million per spherical, constructing one of the vital intensive portfolios in crypto enterprise capital.
The agency’s funding focus consists of synthetic intelligence (27.78%), prediction markets (16.67%), and API and developer instruments (11.11% every), amongst different classes.
a16z is just not the one agency elevating capital. Simply final month, Dragonfly Capital closed a $650 million fund. This confirmed an ongoing institutional urge for food for crypto enterprise investing.
Crypto Enterprise Capital Funds Encounter ‘Identification Disaster’ Amid Market Struggles
The broader cryptocurrency market has confronted challenges, persevering with the decline that started in October. Bitcoin (BTC) is down by 16.7% year-to-date, regardless of a latest bounce-back. Different main large-cap belongings have additionally skilled struggles.
This downturn has prolonged its results to digital asset treasuries, crypto equities, and even enterprise capital funds. Bloomberg reported in early February that crypto-focused enterprise capital funds are grappling with what’s described as “an id disaster.”
Based on the report, crypto-native funds had been shifting their focus towards higher-performing sectors, equivalent to stablecoin infrastructure and on-chain prediction markets. Some had been additionally branching into adjoining industries like fintech and synthetic intelligence (AI).
“Web3 as a class is basically uninvestable for now. Folks have moved on from NFTs, gaming, and the subsequent incremental DeFi platform constructed for its personal sake. Even crypto-native VCs with dry powder are pivoting laborious towards fintech and stablecoin performs, and prediction markets. The whole lot else is struggling to get consideration,” Santiago Roel Santos, founder and chief government officer of crypto personal fairness agency Inversion, mentioned.
But, a16z’s ongoing dedication suggests the agency believes there are alternatives for long-term worth creation within the present atmosphere.
Whether or not the newest efforts mark a ground for crypto enterprise or just a consolidation among the many sector’s most sturdy gamers, the reply will rely largely on whether or not the present market downturn produces the sort of breakout corporations that justify the capital dedicated throughout it.
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