Andreessen Horowitz Seeks $10 Billion for AI, Defense Funds, Omitting Dedicated Crypto Vehicle

Executive Summary

Venture capital firm Andreessen Horowitz (a16z) is reportedly seeking to raise approximately $10 billion for new funds primarily focused on artificial intelligence (AI) applications, AI infrastructure, defense, and investments in more mature companies. Notably, this substantial fundraising effort does not include a dedicated crypto fund, marking a significant departure for a firm that has historically been a leading proponent and investor in the digital asset space. This move occurs despite a16z's recent public statements maintaining a bullish outlook on the crypto market and ongoing, albeit smaller, investments in specific crypto projects.

The Event in Detail

According to reports, Andreessen Horowitz is aiming to secure about $10 billion across several new investment vehicles. The planned allocations include $6 billion designated for investments in more mature companies, $1.5 billion for AI applications, $1.5 billion for AI infrastructure, and over $1 billion for a defense and manufacturing-focused fund. This structure highlights a clear strategic emphasis on emerging technological sectors and established businesses outside of a dedicated crypto vehicle.

A16z has played a pivotal role in shaping the modern crypto ecosystem through its dedicated a16z Crypto arm, backing prominent entities such as Coinbase, Uniswap, Dapper Labs, and MakerDAO. The omission of a specific crypto fund in this new, large-scale fundraising round is particularly noteworthy given the firm's recent publication of a "State of Crypto report," which expressed a positive outlook on the global and growing crypto market, including the mainstream adoption of stablecoins and increasing financial institutional engagement. However, a16z has not entirely ceased its crypto activities, with its crypto investment arm recently allocating $50 million to Jito, a liquid staking protocol for the Solana network, and $55 million to LayerZero, a Web3 cross-chain messaging protocol.

Market Implications

This strategic redirection of capital by a prominent venture capital firm like Andreessen Horowitz could lead to a re-evaluation of institutional investment trends within the cryptocurrency sector. The increased focus on AI and defense by a major market influencer may divert attention and capital from crypto investments, potentially influencing other venture capital firms and broader market sentiment. While a16z's continued, smaller-scale crypto investments suggest a nuanced rather than a complete withdrawal, the absence of a dedicated large-scale fund in this new round signifies a shift in primary capital allocation priorities.

The broader venture capital landscape indicates that interest in artificial intelligence has begun to siphon attention and investment from crypto. While crypto VC activity remains below the levels seen in previous bull markets, with Q2 2025 representing one of the smallest quarters for venture investment since late 2020, the market is also exhibiting signs of maturation. Later-stage deals are capturing a larger share of capital, reflecting a growing emphasis on more established projects. Additionally, competing investment vehicles such as spot Exchange Traded Funds (ETFs) and digital asset treasury companies are drawing institutional investment, further diversifying options beyond traditional venture funds.

Broader Context

Despite the specific fundraising strategy of a16z, the overall crypto market in 2025 is characterized by evolving maturity and institutional adoption. Data from Q2 2025 shows over $10.03 billion in venture capital raised in the crypto space, with 75% of institutional investors reportedly planning to increase their crypto exposure. Regulatory frameworks like the U.S. GENIUS Act and the EU's MiCA framework are transforming crypto from a gray zone into a more structured market, facilitating stablecoin issuance and public market participation. For instance, Circle Internet's 2025 IPO on the NYSE raised $2.3 billion, signaling growing institutional confidence. Venture capital in crypto infrastructure, encompassing custody, compliance, and tokenization, saw a 100% year-on-year surge in Q2 2025. This capital is predominantly directed towards building foundational infrastructure for institutional adoption rather than speculative tokens. Themes such as AI-enabled crypto agents, proof-of-personhood solutions, stablecoin payment rails, and the tokenization of real-world assets are identified as key drivers for the sector's evolution, with firms like a16z continuing to make strategic bets in these areas. Andreessen Horowitz's long-term philosophy continues to combine bold bets on innovative blockchain technology with cautious capital deployment and hands-on support in areas like regulation and scaling.