$2 billion reassurance: While riding the AI wave, a16z hasn't forgotten about crypto

Article by: Yangz, Techub News

As the crypto market experiences a period of cold and warmth, and capital floods into the AI sector, a major news has emerged in the field of crypto venture capital. According to Fortune magazine, citing multiple insiders, a16z’s crypto division, a16z Crypto, is raising its fifth fund, targeting approximately $2 billion, with plans to complete fundraising by the first half of 2026.

As the leading player in crypto VC, the news of a16z’s contrarian fundraising quickly drew widespread market attention. Although the $2 billion size is less than half of the $4.5 billion peak reached in 2022, at a critical point of industry cycle rotation and gradually clearer regulatory environment, this move undoubtedly injects a strong boost into the winter crypto market and once again affirms their firm long-term bet on blockchain technology.

From $300 million to $4.5 billion: a16z’s first four cycle bets

To understand the contrarian move of a16z Crypto’s fifth fund, it helps to look back at the evolution of its first four funds. This is not only a story of capital scale expansion but also a chronicle deeply tied to crypto market cycles.

First fund (June 2018): Sowing in the bear market. At that time, Bitcoin had just fallen from the $20,000 high, and the market was in deep cold, with mainstream capital retreating. Yet, a16z went against the trend, officially establishing its first dedicated crypto fund with a scale of $300 million. Early on, the fund heavily invested in MakerDAO (now renamed Sky), an established DeFi protocol, demonstrating a deep layout in decentralized governance. This “counter-cyclical” precise strike not only brought substantial paper returns but also cemented a16z’s unshakable position in the Web3 space.

Second fund (April 2020): On the eve of recovery. On the eve of global financial turmoil and the “DeFi Summer” explosion, a16z launched its second fund of $515 million, during which giants like Uniswap, which would later dominate the DeFi track, entered its portfolio. During this phase, a16z adhered to a “DeFi Lego” layout logic, betting on foundational protocols that could be combined to build a decentralized financial system: trading (Uniswap), lending (Compound), derivatives (Synthetix), stablecoins (Celo), almost covering the entire decentralized banking business line.

Third fund (June 2021): Bull market frenzy. As the 2021 crypto bull market peaked, a16z raised a record-breaking $2.2 billion, setting a new industry fundraising record at the time. During this period, a16z adopted an “full track expansion” investment logic, focusing on high-performance public chains like Solana and Avalanche, leading NFT projects like Yuga Labs and OpenSea, as well as DeFi protocols like dYdX and Lido. At this point, a16z had undoubtedly evolved from a “track bettor” to a “super incubator” of the Web3 ecosystem.

Fourth fund (May 2022): Peak guard. Amid the Terra collapse and market downturn, a16z announced the completion of a $4.5 billion mega fund, shocking the industry. Of this, $1.5 billion was for seed investments, and $3 billion for venture investments. With this ample “winter reserve,” a16z laid out core infrastructure like LayerZero and Optimism during the downturn, and invested in decentralized social protocols Farcaster and Lens Protocol, which were highly anticipated at the time. Chris Dixon’s assertion that “we are now entering the golden age of Web3” remains a frequently cited stance.

From $300 million to $4.5 billion, from sowing in the bear market to guarding at the peak, each fundraising by a16z crypto has been aligned with different cycle nodes, yet always following the same logic: scale expansion driven by industry growth, investment themes deepening with technological iteration, and unwavering resilience across cycles. Now, the fifth fund may return to the market with a target of $2 billion. Unlike previous “stepwise jumps,” this time the scale reduction and increased focus may signal a new judgment by a16z on the next cycle.

Mainstay in the AI wave

Looking ahead to early 2026 in Silicon Valley, capital’s focus has wildly shifted toward AI. Just as Paradigm expanded its new $1.5 billion fund to include AI, robotics, and other fields, capital once dedicated to Web3 is being overtaken by computing power and large models.

More poignantly, Kyle Samani, co-founder of Multicoin Capital, has stepped back. Once hailed as “one of the greatest investors in crypto history,” he has shifted his focus to AI and robotics. Before leaving, he posted a tweet revealing a pessimistic outlook: “Cryptocurrency is not as interesting as many crypto enthusiasts (including myself) once thought. I believed in the vision of Web3, in dApps. But now I don’t.” Although the tweet was quickly deleted, this shift from conviction to disillusionment has prompted the market to reevaluate the grand narrative of Web3.

At this crossroads, a16z crypto’s fifth fund shows a thought-provoking stance.

First, in scale. Compared to the $4.5 billion of the fourth fund, the $2 billion target is more than halved. But this may not be retreat; rather, a proactive “leaning down”—abandoning broad sector coverage for a higher-frequency, more targeted approach. Second, the fundraising pace is noticeably “accelerated.” Previous funds typically took one to two years to raise, but the fifth fund plans to close by the first half of 2026. This compression suggests that in the current crypto narrative cycle, being a step behind could mean missing the entire cycle. Faster fundraising means faster deployment. Of course, the most intriguing signal is that all this is happening alongside a16z’s aggressive AI investments.

In fact, a16z itself is a major player in AI. In October 2025, it launched a $10 billion new fund, with $6 billion dedicated to AI; by January 2026, it completed a $15 billion raise, spanning infrastructure, application, and growth funds, with AI and the intersection with crypto listed as core investment areas. In other words, a16z is not indifferent to the AI boom; quite the opposite, it is riding the wave at the crest.

Therefore, the choice of the fifth fund by a16z crypto carries significant signals: within the same parent organization, AI funds chase the wave while crypto funds deepen their position. This “division of labor rather than shift” contrasts subtly with Paradigm’s cross-sector integration and Kyle Samani’s departure—while peers are adding or reducing tracks, a16z chooses to let both legs run independently.

Conclusion

“$2 billion, six-month fundraising cycle, fully focused on blockchain.”

In an era where AI is stealing countless headlines, a16z crypto’s fifth fund offers its own answer. This is not stubbornness ignoring the trend but a firm choice based on long-term vision. When capital races for the next grand narrative, someone must stay and keep cultivating. This $2 billion is not just a fundraising figure but a reassurance to the market: at least, a16z still commits a dedicated team, independent capital, and a resilient track for blockchain through cycles.