Andreessen Horowitz Raises $2.2B for Fifth Crypto Fund

Andreessen Horowitz announced Tuesday that it raised $2.2 billion for a16z Crypto Fund 5, bringing the firm’s crypto capital under management to nearly $9.8 billion.

The new vehicle will back startups building crypto infrastructure and consumer products. The firm cited demand for prediction markets and perpetual futures, and pointed to growing stablecoin use as a driver of real-world crypto adoption.

In a blog post, the firm wrote, “A new financial system is taking shape that runs continuously, settles nearly instantly, costs almost nothing, and is open to anyone with internet access.” The post said the fund will back founders focused on turning infrastructure into everyday products and described stablecoins as tools people use to save, send money across borders and pay for goods.

Fund 5 matches the size of the firm’s 2021 crypto fund and is smaller than its $4.5 billion fourth fund raised in 2022. Andreessen Horowitz began crypto investing with a $350 million fund in 2018 and followed with a $515 million vehicle in 2020.

The announcement comes as the broader crypto market has shown mixed performance. Bitcoin and Ethereum hit new all-time highs last year and then pulled back this year. Bitcoin fell about 50% from an October peak above $126,000 before rising above $81,000 on Tuesday.

Several crypto companies have announced layoffs in recent months. Coinbase said it will cut about 14% of its workforce as it responds to market weakness and shifts to an AI-focused operating model.

Other venture firms focused on crypto have also closed funds recently. Haun Ventures raised a $1 billion second fund to invest where crypto infrastructure meets AI, and Dragonfly closed a $650 million fourth fund earlier this year.

Andreessen Horowitz said Fund 5 will provide capital for trading platforms, infrastructure projects, stablecoin-related services and decentralized finance applications, with an emphasis on products intended to increase everyday use of crypto technologies rather than projects aimed solely at short-term price gains.