Andreessen Horowitz announced the close of a $2.2 billion fund focused on crypto investments, increasing the firm’s total capital devoted to digital assets to approximately $9.8 billion across five funds. The move positions the firm among the largest venture backers in the sector.
According to the firm, the new pool will concentrate on projects that create connections between crypto, traditional finance and artificial intelligence, although the announcement provided limited specifics on investment strategy, target returns or the identity of investors participating in the fund.
In a personnel change tied to the initiative, Andreessen Horowitz promoted Chief Technology Officer Eddy Lazzarin to general partner to help lead the next phase of the firm’s crypto investments.
The fundraising was completed against a downbeat market backdrop. Bitcoin remains nearly 40% below its October peak, and smaller tokens have experienced steeper declines. Those market pressures coincide with a period in which some smaller funds are finding it difficult to secure commitments.
Research cited by the firm points to growing institutional interest in artificial intelligence as a factor that has diverted attention and capital away from crypto funds. Galaxy Digital’s work, as referenced in the firm’s commentary, shows that in the fourth quarter total capital allocated to crypto-focused venture funds was about $2 billion across 11 funds - a level described as modest in comparison with the sector’s peak in early 2022.
Andreessen Horowitz partners framed the timing of the raise as occurring during a quieter moment for the industry. In a post on the firm’s blog they wrote:
"We’re at one of those quieter moments now. And the signal coming through is one of the most encouraging it has been in years,"
The broader venture landscape saw funds raise a total of $8.75 billion last year, a sum the firm noted was more than in any year since 2022. The announcement did not provide additional metrics on expected deployment pace or targeted subsectors within crypto beyond the stated interest in integrating traditional finance and AI.
Disclosure: This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.