a16z crypto raises $2.2B, Haun Ventures raises $1B in new funds

a16z crypto reduces fund size after 2022 peak

a16z crypto’s fifth fund is smaller than its $4.5 billion fourth fund raised in 2022, which remains the largest crypto venture fund to date. Paul Cafiero, communications partner at a16z crypto, said the reduced size reflects a strategic shift, stating that “shorter fundraising cycles allow us to keep pace with ever-changing crypto trends.”

Cafiero declined to disclose when fundraising began or closed, whether the fourth fund has been fully deployed, or if it still holds undeployed capital, citing compliance reasons. It also remains unclear whether the fifth fund has begun investing.

a16z crypto promoted Eddy Lazzarin, its chief technology officer, to general partner, joining Chris Dixon, Ali Yahya and Guy Wuollet.

The firm said Fund 5 will remain focused exclusively on crypto investments. Cafiero said the fund is “100% dedicated to investing in crypto entrepreneurs across all stages.”

a16z crypto points to stablecoins and regulation

a16z crypto said stablecoins continue to show increasing usage even as broader market activity has cooled. The firm also highlighted blockchain applications in capital markets, including perpetual futures, prediction markets and onchain lending.

The firm said, “A new financial system is taking shape that runs continuously, settles nearly instantly, costs almost nothing, and is open to anyone with internet access.”

It also referenced the GENIUS Act as an example of regulatory progress. Asked about the Clarity Act, Cafiero said, “We remain hopeful and optimistic.”

Bitcoin was trading around $80,900 at the time of the announcement.

a16z crypto said, “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.” The firm added, “That is how every important computing platform has eventually mattered, and it is how crypto will too.”

Haun Ventures deploys capital across crypto and AI

Haun Ventures plans to deploy its $1 billion raise over the next two to three years, targeting crypto companies and startups at the intersection of finance, artificial intelligence and alternative assets.

The firm had been seeking $1 billion last year to launch two funds, with the round expected to close in June. Haun Ventures previously raised $1.5 billion in 2022 before the crypto market downturn.

Katie Haun founded the firm after serving as a Coinbase board member and general partner at a16z. She previously worked as a prosecutor at the Justice Department.

The firm’s portfolio includes Fireblocks, Chainalysis and Aptos Labs. It recently participated in an $18 million round for Squads, which is expanding its stablecoin platform Altitude.

The broader venture environment has become more selective, with investors focusing on companies demonstrating product-market fit and revenue potential.

Other firms are also raising capital. Dragonfly closed a $650 million fourth fund, Paradigm is seeking up to $1.5 billion for a broader strategy including artificial intelligence and robotics, and Blockchain Capital is raising about $700 million across two funds.