a16z raises another $2 billion crypto fund against the trend, but the neighboring venture firm has already shifted its focus to AI and robotics.

The crypto market has evaporated over $2 trillion from its peak, and most venture capital firms are starting to “look for new opportunities” — co-founder of Multicoin has left to focus on AI, Paradigm is also expanding into robotics. But a16z is doing the opposite, raising its fifth crypto fund with a target of $2 billion. Simply put: while others are retreating, a16z is increasing their bets.
(Background: The $4.5 billion fund! The world’s largest Web3 VC a16z launches its 4th crypto fund)
(Additional context: Farcaster’s major overhaul, a16z invests $180 million to boost Web3 social)

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• Why scale back? Not a lack of confidence, but a change in strategy
• The key point: other VCs are already “changing lanes”
• What does this mean for you?

You might think crypto VCs are pulling back, but a16z clearly doesn’t see it that way. According to Fortune, a16z Crypto is raising its fifth crypto fund, aiming for about $2 billion, with fundraising expected to be completed by mid-2026.

Sounds like a lot, right? But compare it to the previous fund — the fourth fund in 2022 was $4.5 billion. This time, they’re cutting more than half.

Why scale back? Not a lack of confidence, but a change in strategy

a16z explains that they are shifting to shorter fundraising cycles to stay more agile and adapt quickly to changing narratives in the crypto market. In plain language — instead of raising a large sum once and getting stuck in a particular narrative, they prefer smaller, more frequent raises to respond flexibly.

This shift has context. Since the market’s peak in October last year at around $4.4 trillion, over $2 trillion has evaporated. Not only is the market cooling, but even projects backed by a16z have hit setbacks — decentralized social platform Farcaster (dubbed “Web3’s version of X”) sold off its infrastructure in January, returning $180 million to investors.

a16z Crypto’s head, Chris Dixon, painted a future of a decentralized internet in his 2024 book Read Write Own. But the reality is, many investments based on that vision haven’t yet borne fruit.

The key point: other VCs are already “changing lanes”

Interestingly, while a16z is increasing its bets, peers are already exploring new directions.

Multicoin Capital co-founder Kyle Samani resigned in February, saying he wanted to “explore new technological fields” — including AI, longevity tech, and robotics. To put it simply: he feels the alpha in crypto isn’t enough anymore.

Crypto giant Paradigm is also expanding into AI and robotics, with its latest fund targeting $1.5 billion. Katie Haun (former a16z partner) is raising a new fund through Haun Ventures, but it’s reportedly slower than expected.

The overall trend is clear: Wall Street’s crypto heavyweights are narrowing their focus to more “practical” sectors like stablecoins, RWA (real-world asset tokenization), and financial products. As for the flashy, money-burning visions of Web3? More and more are choosing to put them on hold.

What does this mean for you?

If you follow the crypto scene, the message is clear: smart money is diversifying. Some remain in crypto but focus on financial infrastructure (stablecoins, RWA), while others are shifting directly into AI and robotics.

a16z’s decision to stay and continue betting signals — to some extent — their confidence that the crypto industry still has another wave ahead. But the fact that they’re halving their fund size also shows that even the most committed believers are starting to bet more pragmatically.