Andreessen Horowitz Eyes $10B Raise for AI and Defense, Potentially Sideline Solana-Backed Crypto

• The fundraise includes $6 billion for mature companies, $1.5 billion each for AI applications and infrastructure, and over $1 billion for defense and manufacturing.

• Crypto’s omission is surprising given a16z’s influential role in backing projects like Coinbase and Uniswap.

• Recent investments include $50 million in Jito on Solana and $55 million in LayerZero, showing continued crypto engagement.

Discover how a16z’s $10 billion fundraise skips crypto for AI and defense. Explore implications for the digital asset sector and ongoing investments. Stay informed on venture capital trends today.

What is a16z’s $10 billion fundraise excluding crypto?

A16z’s $10 billion fundraise targets artificial intelligence and defense industries, with allocations for mature companies, AI applications, infrastructure, and a defense-focused vehicle. According to a Financial Times report citing anonymous sources, this marks a departure from including crypto, a sector where a16z has been a major player. The firm continues to support crypto through its dedicated arm, but this raise emphasizes other high-growth areas.

Why has crypto been excluded from a16z’s latest investment plans?

The exclusion of crypto from this $10 billion raise reflects a focused strategy on AI and defense, sectors seeing rapid advancement and government interest. A16z’s recent State of Crypto report, published on Wednesday, underscores the sector’s global growth, mainstream stablecoins, and institutional adoption, yet no new crypto fund is mentioned here. This could indicate that existing crypto allocations suffice, given investments like the $50 million in Jito, a Solana-based liquid staking protocol, earlier this month. Experts note that venture capital often prioritizes diversified portfolios to mitigate risks in volatile markets like crypto. For instance, the report highlights stablecoin transaction volumes exceeding $100 trillion annually, signaling maturity, but a16z appears to channel fresh capital elsewhere. This approach aligns with broader Silicon Valley trends where AI investments surged by over 300% in the past year, per industry analyses.

Growth of the crypto ecosystem. Source: A16z

Tempo, Stripe’s new blockchain, hits $5B valuation in $500M funding round.

Frequently Asked Questions

Is Andreessen Horowitz abandoning its crypto investments with this $10 billion fundraise?

No, a16z is not abandoning crypto. The firm maintains a dedicated crypto arm that has backed key projects like Coinbase, Uniswap, and MakerDAO. Recent moves include a $50 million investment in Jito and closing UK offices to focus on US crypto efforts, demonstrating sustained commitment despite the new raise’s focus on AI and defense.

What recent crypto investments has a16z made in 2025?

In early 2025, a16z invested $50 million in Jito, enhancing Solana’s staking capabilities, and $55 million in LayerZero for cross-chain messaging. These follow a pattern of supporting innovative Web3 protocols, with the firm emphasizing US-based crypto development amid regulatory progress.

Key Takeaways

• Strategic Diversification: A16z’s $10 billion raise prioritizes AI and defense, allocating over $9 billion across these areas to capitalize on technological and national security demands.
• Ongoing Crypto Support: Despite the exclusion, a16z’s crypto arm remains active, with investments in Solana ecosystem projects and cross-chain tech underscoring belief in decentralization.
• Industry Implications: This shift may influence other VCs to balance crypto with AI, but a16z’s State of Crypto report signals optimism for digital assets’ global expansion.

Conclusion

Andreessen Horowitz’s $10 billion fundraise excluding crypto represents a calculated pivot toward artificial intelligence and defense investments, while its dedicated crypto efforts continue to shape the digital asset landscape. With backing for protocols like Jito and LayerZero, a16z reaffirms its role in decentralization. As the crypto market matures with stablecoins and institutional embrace, investors should monitor how this diversification impacts broader venture capital flows in the sector. For the latest on a16z’s $10 billion fundraise and crypto trends, explore more insights on emerging technologies.

Venture capital firm Andreessen Horowitz (a16z) continues to wield significant influence in the tech world, but its latest fundraising efforts signal a notable shift. The firm is reportedly seeking to raise approximately $10 billion, directed primarily toward artificial intelligence (AI) and defense sectors, with crypto conspicuously absent from the plans. This development comes as a surprise, given a16z’s longstanding prominence in the cryptocurrency space.

Breakdown of the proposed funds includes $6 billion earmarked for investments in more established companies, $1.5 billion for AI applications, another $1.5 billion for AI infrastructure, and more than $1 billion focused on defense and manufacturing initiatives. These allocations underscore a16z’s intent to tap into areas bolstered by substantial private and public sector interest.

A16z has long been a cornerstone of the crypto ecosystem. Through its a16z Crypto division, the firm has provided crucial early-stage funding to industry leaders such as Coinbase, the leading US cryptocurrency exchange; Uniswap, a decentralized trading protocol; Dapper Labs, creators of NBA Top Shot; and MakerDAO, pioneers of the DAI stablecoin. Beyond investments, a16z has advocated for pro-crypto policies in the United States, influencing regulatory discussions.

The omission of a crypto-specific fund in this raise is particularly striking against the backdrop of a16z’s optimistic outlook. Just a day prior, on Wednesday, the firm released its State of Crypto report, which paints a vibrant picture of the industry. It describes the crypto market as increasingly global and expansive, with stablecoins achieving mainstream traction—processing volumes that rival traditional payment networks. The report also notes growing acceptance from financial institutions, including major banks exploring blockchain integrations.

Despite the absence in the new raise, a16z’s commitment to crypto persists. In recent weeks, the crypto arm deployed $50 million into Jito, a protocol enabling liquid staking on the Solana blockchain, which supports efficient network participation without locking assets. Earlier, in mid-April, a16z committed $55 million to LayerZero, a interoperability solution facilitating seamless communication across diverse blockchains. These actions reinforce a16z’s dedication to Web3 infrastructure.

Furthermore, the firm’s strategic realignment includes closing its United Kingdom operations in late January to concentrate resources on the US crypto landscape. This decision aligns with anticipated regulatory clarity in the United States, potentially fostering a more favorable environment for innovation.

Crypto fundraising record: The sector saw $3.5 billion raised in a single week, setting a new benchmark amid renewed investor confidence.

The role of venture capital in cryptocurrency remains a point of debate. While funding has accelerated project development, critics argue it introduces centralized influences into a decentralized paradigm. Ethereum co-founder Joseph Lubin addressed this in recent comments, acknowledging that venture capitalists primarily aim to extract value from ecosystems like Ethereum. However, he emphasized their secondary objective of advancing toward robust decentralization, stating there is “no reason for concern” as long as innovation drives progress.

Lubin’s perspective contrasts with concerns from Ethereum developer Federico Carrone, who warned that the expanding sway of firms like Paradigm could pose “tail risks” to the ecosystem’s integrity. Carrone suggested that these dynamics would become evident in coming months, urging community vigilance.

In the broader context, a16z’s moves exemplify the evolving priorities within Silicon Valley venture capital. AI investments have exploded, with projections estimating the market to reach $15.7 trillion by 2030, driven by applications in automation, healthcare, and beyond. Defense tech, meanwhile, benefits from heightened geopolitical tensions and US government initiatives like the CHIPS Act, which allocates billions for semiconductor and related manufacturing advancements.

For crypto enthusiasts, this fundraise exclusion does not spell doom. A16z’s track record—managing over $35 billion in assets across funds—positions it to sustain crypto support independently. The firm’s report highlights key metrics: crypto’s total market capitalization surpassing $2.5 trillion, daily active users exceeding 10 million, and developer activity rivaling top tech platforms.

Looking ahead, this development may prompt other VCs to reassess allocations. Firms like Sequoia Capital and Benchmark have similarly diversified into AI, but crypto’s resilience—evidenced by post-2022 recovery and ETF approvals—suggests it remains a vital asset class. Investors should view a16z’s strategy as a vote of confidence in multiple frontiers, ensuring balanced exposure to high-potential sectors.

As the crypto industry navigates regulatory hurdles and technological leaps, a16z’s dual focus could catalyze synergies between AI and blockchain. For instance, AI-enhanced smart contracts or decentralized machine learning models represent untapped opportunities. Stakeholders are encouraged to track a16z’s portfolio updates for signals on future intersections.