As crypto cools, a16zcrypto raises a $2.2B fund
Published: (May 5, 2026 at 05:15 PM EDT)
2 min read
Source: TechCrunch
Source: TechCrunch
Overview
In a blog post that lays out a vision for crypto’s future—ranging from a “new financial system” to warnings about “opaque” AI—a16zcrypto announced a new $2.2 billion fund. This is the firm’s fifth fund, bringing total capital raised to $9.8 billion.
Fund Details
- The fund promotes CTO Eddy Lazzarin to General Partner, expanding the GP investing team to four members: Chris Dixon, Ali Yahya, Guy Wuollet, and Lazzarin.
- Notable past investments include Coinbase, Kalshi, and the Solana Foundation.
- A spokesperson told TechCrunch the fund will be “dedicated 100 % to crypto entrepreneurs,” despite hotter markets elsewhere.
Market Context
- Crypto trading is in a slowdown: on the same day the fund was announced, Coinbase announced it was laying off 14 % of its workforce (TechCrunch).
- March was the lowest‑volume month for crypto exchanges since November 2023, according to CoinGecko (report).
- VC investing in crypto startups cooled to ≈ $5 billion in Q1 2026, down from ≈ $6 billion a year earlier, per DLNews citing DefiLlama (Yahoo Finance).
The a16zcrypto partners acknowledge the quieter market, noting that “much of what gets built during a downtime is usually more useful than it looked at the peak, and more durable than it looked at the trough.”
Activity Among Other Crypto VCs
- Paradigm is reportedly raising a $1.5 billion fund to expand into robotics and AI (Wall Street Journal).
- Y Combinator has not listed any crypto or blockchain startups in its most recent “Requests for Startups” list (Y Combinator RFS).
- Former Andreessen Horowitz investor Katie Haun announced her firm Haun has raised a $1 billion fund and will continue investing in crypto while also exploring AI agent tech intersecting with blockchain and fintech (TechCrunch).
Outlook
Even as some of the biggest crypto VCs are drawn toward AI opportunities, a16zcrypto’s new fund signals a continued commitment to supporting blockchain‑related startups during a market slowdown.