a16z Crypto pushes to raise a new fund… $2 billion in size

JOON HYOUNG LEE

Summary

a16z Crypto reported it is pushing to raise a new $2 billion cryptocurrency investment fund.
This will be its fifth fund, and it said to be smaller than the $4.5 billion fourth fund raised in 2023.
CoinDesk reported that a crypto market downturn and a more cautious stance in VC capital deployment led to the reduced fundraising target.

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Andreessen Horowitz (a16z), one of the world’s largest venture capital (VC) firms, is seeking to raise a new $2 billion cryptocurrency investment fund.

According to Fortune on the 5th (local time), a16z Crypto, a16z’s crypto investment arm, has recently begun work on raising its fifth fund. The target size of the new fund is said to be $2 billion. a16z Crypto plans to wrap up the fundraising by the end of the first half of this year.

Previously, a16z Crypto raised its fourth fund in 2023, totaling $4.5 billion. CoinDesk reported that “the fifth fund will be smaller than the fourth,” while adding that it is “large compared with the $650 million fund raised by Dragonfly Capital last month.”

The lower target for this fund appears to reflect the recent slump in the crypto market. CoinDesk said, “(a16z Crypto’s) fund size suggests that as the crypto market has cooled after hitting a peak last year, VC investment deployment is becoming more cautious.”

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