a16z Crypto Commits $2.2 Billion to Blockchain Startups Amid Market Slowdown

a16z Crypto says the new fund will keep backing decentralized finance and infrastructure even as investors shift toward hotter sectors.

Andreessen Horowitz’s crypto arm said Monday it has closed a $2.2 billion vehicle aimed at startups building on blockchains, marking the group’s fifth dedicated pool and bringing its cumulative crypto war chest to roughly $9.8 billion. The firm also elevated Eddy Lazzarin from chief technology officer to general partner, expanding the small group of GP investors to four, alongside Chris Dixon, Ali Yahya and Guy Wuollet.

The announcement landed on a day that highlighted the industry’s uneven footing: Coinbase — an a16z-backed exchange — revealed plans to cut about one out of every seven roles as it reorganizes, and market trackers showed March trading volumes across exchanges hit their weakest point since late 2023. Those developments underscore why venture activity in the sector has cooled from last year: defi and blockchain startups raised about $5 billion in the first quarter of 2026, down from roughly $6 billion in the same period a year earlier, according to data compiled by DefiLlama and reported by industry outlets.

Partners at a16z Crypto framed the timing as part of the sector’s cyclical nature. They argued that quieter stretches often produce technologies that prove more useful over time than the headline-grabbing projects born in boom months. “Calmer markets let teams focus on fundamentals,” one partner said in a conversation with reporters, adding that the fund will target builders who can demonstrate sustainable product-market fit rather than chasing short-term price moves. A venture analyst familiar with the fund said the move signals confidence that durable protocols will outlast fads.

That confidence faces competition for capital. Several prominent crypto investors have been diverting attention — and dollars — to artificial intelligence and robotics. Paradigm, for example, has been reported to be assembling about $1.5 billion to broaden its remit into AI and machines. Y Combinator’s latest call for startup themes did not spotlight blockchain projects, and some fund managers say AI is pulling founders as well as LP interest.

Not every crypto-focused firm is abandoning the sector. Former a16z partner Katie Haun has raised a new $1 billion vehicle to continue backing blockchain teams while also hunting for AI agent technology that crosses into finance and crypto. A spokesperson for a16z Crypto told TechCrunch the new fund will remain fully focused on blockchain founders, and partners expect to back companies across exchanges, infrastructure, and new financial services built on distributed ledgers. For founders, the message is straightforward: capital remains available, but investors will favor teams that can show resilience and a plan beyond the cycle.