TLDRAndreessen Horowitz targets $2 billion capital raise for its fifth dedicated cryptocurrency fund, with anticipated closure by mid-2026.The planned fund represents a significant reduction from the firm’s $4.5 billion Crypto Fund 4 launched in 2022.Cryptocurrency venture capital has experienced dramatic decline, plunging from $86 billion in 2022 to just $7.95 billion in 2024.While several crypto-focused venture firms pivot toward AI and robotics investments, A16z maintains focus on both crypto and AI for 2026.February 2026 saw crypto startups secure $895 million in funding, representing a nearly 40% month-over-month decrease.Venture capital powerhouse Andreessen Horowitz, widely recognized as A16z, has initiated fundraising efforts for a $2 billion cryptocurrency-focused investment vehicle. According to Fortune’s report based on confidential sources, the firm targets a mid-2026 completion date.LATEST: Andreessen Horowitz's crypto wing, a16z crypto, is reportedly raising its fifth fund, aiming for around $2 billion, according to Fortune. pic.twitter.com/4T4K8Bprg0— CoinMarketCap (@CoinMarketCap) March 5, 2026This marks the fifth cryptocurrency-specific fund from A16z. Collectively, the firm has accumulated at least $7.6 billion through its four previous crypto-focused investment vehicles.The current fundraising effort represents a substantial downsizing compared to A16z’s most recent crypto initiative. During 2022, the venture firm successfully closed a massive $4.5 billion fund distributed between seed-stage and growth venture opportunities.A16z’s cryptocurrency investment history extends back to at least 2013. The firm made an early strategic investment in Coinbase that year, subsequently establishing its inaugural dedicated crypto fund in 2018 with $300 million in capital.During January 2026, A16z announced it had successfully raised $15 billion spanning multiple new investment funds. This substantial amount accounted for over 18% of total venture capital dollars deployed throughout the United States during 2025.The cryptocurrency venture capital landscape has experienced severe contraction since its 2022 peak. During that year, investment firms collectively raised over $86 billion distributed across 329 distinct funds. By 2024, that figure had collapsed to merely $7.95 billion.Transaction volume has similarly declined precipitously. The first quarter of 2026 has witnessed only 97 venture investments thus far. This contrasts sharply with 427 deals during the equivalent period one year prior and 724 transactions in Q1 2024.Some VCs Are Moving Away From Pure CryptoNot every cryptocurrency-focused investment firm maintains steadfast commitment to the sector. Multicoin Capital co-founder Kyle Samani departed his role in February 2026 to pursue opportunities in artificial intelligence, longevity research, and robotics.Prominent crypto venture firm Paradigm is likewise reportedly assembling a $1.5 billion fund with expanded mandates encompassing artificial intelligence and robotics technologies.Even among A16z’s portfolio companies, challenges persist. Decentralized social networking platform Farcaster returned $180 million to its investors this past January following the divestiture of its infrastructure assets.The aggregate crypto market capitalization has contracted by more than $2 trillion from its approximately $4.4 trillion peak reached in early 2025.A16z Still Sees Upside in Crypto and AINotwithstanding the broader market contraction, A16z demonstrates continued conviction in cryptocurrency’s prospects. The firm recently designated crypto and AI as its primary investment focus areas for 2026.The venture firm anticipates stablecoins will achieve deeper integration with conventional banking infrastructure. Additionally, A16z identifies privacy features as a crucial competitive advantage within cryptocurrency, while expecting prediction markets to expand significantly in both scale and application.Regarding artificial intelligence, A16z projects AI models will evolve to operate similarly to application marketplaces and assume expanded responsibilities in cybersecurity operations.February 2026 witnessed crypto startups securing $895 million in funding. This figure represents nearly a 40% decline from January’s $1.47 billion and sits marginally below the $1 billion raised during February 2025.The post Andreessen Horowitz Launches $2B Crypto Fund Five Despite Market Contraction appeared first on Blockonomi.