Crypto VC Firms See Assets Under Management Plummet Amid Price Decline

The crypto venture capital (VC) industry has been hit hard by the decline in cryptocurrency prices, resulting in a significant reduction in assets under management (AUM) for top firms.

a16z crypto's four crypto funds saw their AUM plummet nearly 40% from 2024 to $9.5 billion, while Multicoin Capital's AUM was cut in half to $2.7 billion over the same period.

However, a closer look at the data reveals that these firms are proactively returning money to their limited partners (LPs), which can be seen as a positive sign of their performance.

a16z crypto's first fund returned 5.4 times its paid-in capital ratio, indicating a strong return on investment. Meanwhile, Multicoin's AUM was affected by the company's structure, which operates both a hedge fund and a VC fund.

Haun Ventures stands out as an exception, with its AUM growing by over 30% year-on-year to $2.5 billion. This growth can be attributed to the firm's successful investment in the stablecoin company BVNK, which was acquired by Mastercard for up to $1.8 billion.