Andreessen Horowitz’s crypto arm, a16z crypto, has closed a $2.2 billion fund to back crypto startups turning blockchain technology into products people use every day, from payments and savings tools to prediction markets and on-chain lending platforms.
The new fund, called Crypto Fund 5, brings a16z crypto’s total raised since its founding in 2018 to $9.8 billion. It is also smaller than its predecessor: Crypto Fund 4 raised $4.5 billion in 2022 at the peak of the last cycle.
Chris Dixon, who built a16z crypto from a $350 million debut fund in 2018, has shifted the firm’s thesis with this raise. Rather than backing early-stage protocol bets, Fund 5 is focused on founders who are converting existing crypto infrastructure into usable products.
“The founders we’re backing with this $2.2 billion fund are working on the part of the cycle that gets less attention, and we believe produces more of the lasting value: turning new infrastructure into products people use every day”, says the company in the announcement.
The firm pointed to stablecoins as the clearest sign that crypto is maturing beyond speculation. People are increasingly using them not just for trading, but to save money, send payments across borders, and pay for goods and services.
a16z crypto also highlighted the growth of blockchain-based financial tools such as prediction markets, perpetual futures contracts, and on-chain lending, as evidence of a new kind of financial system taking shape.
The announcement came a day after Haun Ventures, led by Katie Haun, a former a16z crypto general partner, raised $1 billion for its second fund, also targeting crypto and adjacent financial infrastructure. Dragonfly Capital recently closed a $650 million fourth fund, and Paradigm is seeking up to $1.5 billion for a broader vehicle that would also cover artificial intelligence and robotics.
a16z crypto’s fund, by contrast, is staying focused, with a dedicated team to invest in crypto entrepreneurs across all stages.
Past a16z crypto investments include Coinbase, Uniswap, Kalshi, Anchorage Digital, and the Solana Foundation.
