Exclusive: Venture giant a16z crypto targeting around $2 billion for its fifth fund amid blockchain market downturn, sources say

Fundraising and Investment Strategy - A16z crypto is raising its fifth fund, targeting around $2 billion, with plans to close by the end of the first half of 2026 [1] - The firm has a history of increasing fund sizes, starting with $300 million in 2018 and reaching $4.5 billion in 2022, but the current fund will be less than half of the previous one [2] - A16z crypto is adopting a shorter fundraising cycle to adapt to the rapidly changing trends in the crypto market [2] Market Context - The crypto market is currently experiencing challenges, with Bitcoin prices nearly halving since their all-time high in October, and publicly traded crypto companies facing significant stock declines [2] - Despite market difficulties, the regulatory environment for the crypto industry in Washington, D.C. is considered the most favorable in its 17-year history [2] Investment Philosophy and Projects - A16z crypto has successfully backed several notable projects, including Anchorage, Kalshi, and Uniswap, while also promoting the "Web3" approach to decentralized internet applications [4] - Some projects, such as Farcaster, have struggled, with Farcaster repaying $180 million raised from investors after selling its infrastructure [5]