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ToggleYou might think that crypto VCs are all backing down, but a16z clearly thinks otherwise. According to Fortune , a16z Crypto is raising its fifth crypto fund, targeting approximately $2 billion, with fundraising expected to be completed by mid-2026.
That sounds like a lot, right? But compare it to the last one—the 2022 Fund 4 had $4.5 billion. This one has been cut by more than half.
Why shrink the game? It's not a lack of confidence, it's a change in tactics.
a16z's explanation is that they've switched to shorter fundraising cycles to allow themselves to more flexibly adapt to changing narratives in the crypto market. In plain terms, it's better to raise a large sum at once and then be tied to a particular narrative, rather than raising smaller amounts more frequently and responding to changing circumstances.
This shift has its context. The crypto market has lost over $2 trillion since its peak of approximately $4.4 trillion last October. Not only is the market downturn, but even projects invested in by a16z have suffered losses—the decentralized community platform Farcaster (positioned as "the Web3 version of X") sold its infrastructure in January, returning $180 million to investors.
Chris Dixon, the head of a16z Crypto, outlined a future of decentralized networks in his 2024 book, *Read Write Own*. However, the reality is that many investments based on this vision have yet to materialize.
Here's the key point: Other venture capitalists have already started "changing careers".
Interestingly, while a16z is ramping up its efforts, its competitors are already looking for new directions.
Kyle Samani, co-founder of Multicoin Capital, resigned in February, saying he wanted to "explore new technology areas"—including AI, longevity technology, and robotics. In other words, he felt the crypto Alpha was no longer competitive.
Crypto venture capital giant Paradigm is also reportedly expanding its investments into AI and robotics, with its latest fund aiming to raise $1.5 billion. Haun Ventures, founded by Katie Haun (former partner at a16z), is also raising a new fund, but reportedly at a slower pace than expected.
The overall trend is clear: Wall Street's crypto gurus are narrowing their attention to more "practical" areas like stablecoins, RWA (Real-World Asset Tokenization), and financial products. As for those cool but money-burning Web3 visions? More and more people are choosing to put them on hold for now.
What does this have to do with you?
If you're a follower of the crypto space, the message is clear: smart money is splitting. One part stays in crypto but focuses on financial infrastructure (stablecoins, RWA), while the other goes directly to AI and robotics.
a16z's decision to stay and continue betting is, in a way, a statement made with real money—they believe the crypto industry has another wave to come. However, the fact that their fund size has been halved also shows that even the most steadfast believers are starting to bet in a more pragmatic way.
