Andreessen Horowitz's crypto investment arm closed its fifth fund at $2.2 billion, down significantly from its record $4.5 billion Fund 4 in May 2022. The firm has now raised approximately $9.8 billion across all five funds.
a16z crypto's latest raise reflects a shift in the venture capital landscape following the crypto market downturn that peaked in late 2022. The $2.2 billion Fund 5 represents roughly half the size of Fund 4, marking a notable contraction for the prominent crypto investor.
Despite the smaller fund size, a16z crypto cited growing adoption of stablecoins as a key investment thesis moving forward. The firm has maintained its position as one of the largest crypto-focused venture capital investors globally.
The Fund 5 close comes as broader venture capital markets have contracted following record fundraising in 2021 and 2022. Several major crypto firms faced significant setbacks during this period, including the collapse of FTX and regulatory scrutiny across digital asset markets.
a16z crypto continues to back blockchain infrastructure, decentralized finance, and Web3 applications despite market headwinds.
The SEC has postponed a plan that would have granted broad exemptions allowing US crypto firms to trade tokenized versions of stocks. The delay affects a significant expansion of crypto assets linked to traditional equities.
Kelp DAO has completed recovery of its restaked Ether token following a five-week effort to address a $293 million exploit attributed to North Korea's Lazarus Group in April.
Morgan Stanley launched a cryptocurrency trading pilot on E*Trade with lower fees than Coinbase, Robinhood, and Charles Schwab. The firm plans a broader rollout in 2026.
Crypto exchange Bullish agreed to acquire UK-based financial services outsourcing firm Equiniti from Siris Capital for $4.2 billion. The deal is expected to close in January 2027.