a16z Crypto Raises $2 Billion Fund Amid Broader Market Downturn

a16z crypto, the venture capital arm of Andreessen Horowitz, is raising its fifth fund with a target size of $2 billion. The new fund will focus exclusively on blockchain investments, marking a departure from previous funds that had larger targets.

According to reports, the firm aims to close the round by mid-2026, representing a shorter fundraising cycle compared to its previous funds. This move comes as the broader cryptocurrency market faces challenges, including a decline in Bitcoin's value and struggles for digital asset treasuries and crypto equities.

a16z has been an active player in the crypto market since launching its first $300 million fund in 2018. The firm has invested in various projects, including Kalshi and Jito, and holds 187 investments averaging $10-20 million per round.