A16z Crypto Defies Market Slump, Closes $2.2 Billion Fund and Elevates CTO to General Partner
Andreessen Horowitz’s crypto arm, a16z crypto, has closed a massive $2.2 billion fundraise for its fifth venture fund, signaling that big money still sees long-term potential in digital assets despite a prolonged market chill. The firm also announced Tuesday that Chief Technology Officer Eddy Lazzarin has been promoted to general partner, a move that underscores the growing importance of technical leadership in crypto investing.
Founded by managing partner Chris Dixon, a16z crypto was one of the first major venture firms to go all-in on blockchain technology. Since launching its first $300 million fund in 2018, the firm has raised a total of $9.8 billion across five funds. That includes the $4.5 billion it secured for its fourth fund in 2022—a peak-era raise that now looks prescient in hindsight.
Dixon’s investment thesis, laid out in his book Read Write Own, has long centered on the idea that blockchains would power a decentralized version of the internet. But in practice, many of a16z’s most notable wins have come from financial infrastructure plays: Anchorage Digital, Uniswap, and the prediction market Kalshi. These bets have proven more resilient than the broader narrative around Web3 consumer apps.
“The founders we’re backing with this $2.2 billion fund are working on the part of the cycle that gets less attention and produces more of the lasting value: turning new infrastructure into products people use every day,” Dixon and the a16z crypto general partners wrote in a blog post announcing the fund.
A spokesperson for a16z crypto declined to say whether any capital from the new fund has already been deployed. The raise comes at a time when the crypto market is still struggling to regain its footing. Bitcoin and Ethereum remain roughly 40% or more below their 2025 all-time highs, and retail interest has cooled significantly. Yet institutional investors continue to pour money into top-tier crypto venture funds.
In February, Dragonfly Capital closed a $650 million fourth fund. Paradigm is reportedly seeking up to $1.5 billion for a new vehicle that will also target AI and robotics. And on Monday, Haun Ventures—led by former a16z general partner Katie Haun—announced a $1 billion fund that blends crypto with AI and alternative assets.
When asked whether a16z crypto would expand into AI, a spokesperson said: “Fund 5 is 100% dedicated to investing in crypto entrepreneurs.”
The industry is watching closely. For some, the sheer size of these raises feels out of step with reality. “It’s like they’re building a skyscraper in a ghost town,” said Marcus Chen, a former DeFi analyst now working at a fintech startup. “The market is bleeding retail confidence, and they’re still raising billions. It’s either visionary or delusional.”
Others see it differently. “This is exactly when the smart money moves,” said Elena Torres, a blockchain strategist at a mid-sized investment firm. “The hype is gone, but the infrastructure is maturing. A16z is placing a bet on the next cycle, not this one.”
Still, not everyone is impressed. “Another billion-dollar fund for what? To keep funding overpriced L2s and zombie DAOs?” said Jamal Reeves, a crypto trader and vocal critic of venture-backed projects. “Wake me up when they actually ship something that normal people want to use.”
This story was originally featured on Fortune.com