Big investor drops the 'crypto' label to back AI and robotics too

One of the biggest names in venture capital has dropped the word "crypto" from its crypto fund. Andreessen Horowitz announced Thursday that a16z Crypto is now a16z Frontier. The fund will also back startups building artificial intelligence, robotics and other emerging technologies. Venture capital firms put money into young companies in exchange for a share of them.

What changed

The firm launched a16z Crypto in 2018 as a spinoff focused on digital assets. Its first fund raised $350 million. Over time the funds grew, including a $4.5 billion fund in 2022. The latest fund, a $2.2 billion one announced in May, brings the total raised across five funds to $9.8 billion.

Chris Dixon will lead a16z Frontier with Marc Andreessen, Ben Horowitz, and general partners Eddy Lazzarin and Guy Wuollet. The firm says it will still back crypto startups and keep pushing for crypto regulation.

Why drop the label

Dixon wrote in an X article that more businesses now use blockchain technology behind the scenes. Blockchain is the shared digital record that many crypto projects run on. As that spreads, the line between crypto companies and other companies is blurring. "The label matters less now," he said.

The shift is also a change of message. In May, a spokesperson told Fortune the fifth fund was "100% dedicated to investing in crypto entrepreneurs."

Not only one firm

The firm had already started moving. In June, a16z Crypto led a $33 million seed round, meaning early funding, for Ornn, which builds financial products for the AI computing market. Rivals are doing the same.

• Paradigm announced a $1.2 billion fund in July and said it would extend beyond crypto to AI and robotics.
• Haun Ventures announced $1 billion in new funds in May and focused more on areas like new payment models.
• Founder Katie Haun said building financial services "includes crypto, but is bigger than that tool set alone."

What is not known yet

The material does not say how much of the $2.2 billion will go to AI and robotics versus crypto. It also does not name any new investments under the Frontier brand. Separately, The Information reported that general partner Ali Yahya has told some investors he plans to leave and start a company. He joined in 2017 as the first full-time person on the firm's crypto team.

What it means for you

For most readers, nothing changes today. The signal is about direction. Large pools of money that once chased crypto are being pointed at AI and robotics. That may hint at where new products, services and jobs could come from next.