A16z Crypto Raises $2 Billion Fund Amid Market Downturn

A16z Crypto is raising a fifth crypto-focused fund seeking $2 billion and plans to close by mid-2026. The round is smaller than the firm’s $4.5 billion 2022 fund, and the team has shifted to a shorter fundraising cycle to stay flexible. The move comes during a bear market that has erased more than $2 trillion from total market capitalization since a peak near $4.4 trillion in early October.

Chris Dixon’s Web3 vision, outlined in his 2024 book "Read Write Own," imagines a decentralized internet built on blockchains. Several high-profile bets have underperformed, with decentralized X competitor Farcaster returning $180 million to investors after selling its infrastructure in January.

Many venture investors have narrowed their focus to stablecoins, real-world asset tokenization and financial products, while others explore non-crypto technology.

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