Andreessen Horowitz (a16z) announced the launch of Crypto Fund 5, with US$2.2 billion for investments in blockchain technology startups. The new vehicle targets founders who are transforming crypto infrastructure into everyday products, according to a statement from the manager.
“Founders supported with this fund work in the part of the cycle that receives the least attention and we believe produces the most lasting value: transforming new infrastructure into products that people use every day,” a16z said.
The manager justifies the fund’s momentum based on signs of more consistent adoption of the technology, highlighting that, even in down cycles, the use of stablecoins continued to expand. “People are using digital currencies to save, send money internationally and make payments, often exposing how slow, expensive and unreliable the alternatives are,” the firm said.
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Applications in financial markets
In an official note, a16z cites the advancement of blockchain applications in capital markets. Since the last bull cycle, the manager points to growth in the use of perpetual futures for price discovery, in addition to the expansion of predictive markets and onchain loans aimed at credit in stablecoins.
“Traditional assets are starting to migrate onchain, and onchain finance is being used in addition to native network tokens,” said the manager. According to the statement, this movement indicates the formation of a financial system that operates continuously, with almost instantaneous settlement, reduced costs and global access.
The fund also incorporates a more optimistic reading of the regulatory environment. a16z cites the GENIUS Act as an example of progress, by establishing clearer definitions and opening space for entrepreneurs to act. “We expect further regulatory progress for the rest of the crypto market, offering protection for consumers, certainty for entrepreneurs and a path for mainstream institutions to participate,” said the manager.
Technological context
a16z argues that the properties of crypto networks become more valuable in the current technology context. “Software is becoming more complex and difficult to trust. AI systems are powerful and largely opaque, while the internet infrastructure is more consolidated than ever,” he said.
In this context, the manager points out transparent and verifiable systems, global networks from the beginning and economic models that align interests between users, developers and operators as differentiators. The thesis also includes reducing dependence on intermediaries and the possibility of new forms of digital property.
“In practice, this means making global transfers almost instantly, holding dollars without relying on banks, tokenizing assets so that they circulate frictionlessly across different markets, accessing composite networks that serve as the basis for new services and incorporating these capabilities into diverse applications,” said a16z.
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The statement also mentions the advancement of models in which users directly control their assets and identities, while software agents begin to execute transactions autonomously – including the purchase of data, computing and services – and networks are able to finance themselves and evolve through code.
Crypto Fund 5 arrives four months after Andreessen Horowitz raised $15 billion in new funding, surpassing the $90 billion mark under management. The amount was divided between the manager’s different funds and strategies: the largest share went to the fifth growth fund, which received US$6.75 billion, while vehicles focused on apps and infrastructure raised US$1.7 billion each. The fund dedicated to the area of biotechnology and health raised US$700 million.
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