Top Crypto VCs See Collective Shrinkage: a16z Crypto Fund AUM Plummets 40%, Multicoin Halved
- Core Viewpoint: According to undisclosed SEC filings, the assets under management (AUM) of top crypto VCs generally shrank in 2025. However, this primarily reflects market cyclical fluctuations and some institutions' active distribution of returns to LPs, rather than mere performance decline. Furthermore, several institutions are raising new funds against the trend to position for the next cycle.
- Key Elements:
- a16z crypto's AUM shrank by nearly 40% to $9.5 billion, mainly due to distributing returns to LPs at market highs. Its first fund's DPI reached 5.4x, showing impressive returns.
- Multicoin Capital's AUM was halved to approximately $2.7 billion. Its business is deeply tied to crypto market prices, making it the first to bear the brunt during the 2025 market downturn.
- Pantera Capital's AUM shrinkage partly stemmed from active exits, with five portfolio companies (including Circle) going public in 2025, realizing capital returns.
- Haun Ventures is the only institution whose AUM grew over 30% against the trend, benefiting from its investment in stablecoin company BVNK being acquired by Mastercard and successfully raising a new fund.
- Despite AUM shrinkage, top institutions like Paradigm and a16z crypto are still actively raising new funds (targeting $15-20 billion) to position for the next cycle.
- Crypto VC holdings are directly exposed to extreme token price volatility, fundamentally differing from the traditional VC model. Their AUM changes are significantly influenced by market cycles.
Original Author: Ben Weiss
Original Compilation: Shenchao TechFlow
Guide: A Fortune reporter obtained a batch of previously undisclosed financial disclosure documents for crypto VCs from the SEC. The data shows that the Assets Under Management (AUM) of top firms like Paradigm, Pantera, a16z crypto, and Multicoin shrank across the board in 2025. But the shrinkage isn't all bad news — a16z crypto returned money to LPs at a market peak, with its first fund's DPI reaching 5.4x. The only firm that grew against the trend was Haun Ventures, which hit the stablecoin jackpot with BVNK's acquisition by Mastercard.
The leading players in crypto VC couldn't escape the market crash of 2025.
Fortune reporter Ben Weiss obtained a set of previously undisclosed investment advisor financial disclosure documents from the U.S. Securities and Exchange Commission (SEC). The data is straightforward: the AUM of top firms like Paradigm and Pantera Capital collectively shrank in 2025.
Caption: Changes in Assets Under Management (AUM) for Top Crypto VCs from 2021-2025
Chart by: Ben Weiss / Fortune
But before listing the numbers, there's a premise to clarify: AUM is not a good metric for measuring VC success or failure. It doesn't reflect new fundraising, LP distributions, or capital calls. Crypto asset prices themselves are highly volatile—a single tweet from a mercurial man can send prices on a rollercoaster ride (Musk, Trump, CZ, take your pick). Veteran crypto VCs have seen their assets soar during the 2021 NFT frenzy and plummet during the subsequent "crypto winter."
Original author Ben Weiss also emphasizes: Truly top-tier investors ultimately return money to their LPs. Short-term AUM fluctuations do not equate to performance quality.
With that premise clear, let's look at the specific data.
a16z crypto: AUM Shrinks Nearly 40%, But Money Was Returned to LPs
The combined AUM of a16z crypto's four crypto funds plummeted nearly 40% from 2024, dropping to $9.5 billion. During the same period, the parent company Andreessen Horowitz's AUM swelled to over $100 billion.
Part of the reason for the shrinkage is that the firm began distributing returns from its first three funds back to LPs. According to sources familiar with the matter, a16z crypto intentionally chose to make these distributions during the 2025 crypto market peak.
How effective was this? According to Newcomer data, the net DPI (Distributed to Paid-In capital ratio) for a16z's first crypto fund reached 5.4x. Compared to other VC funds raised around the same time in 2018 on the Carta platform, this return is quite impressive.
In other words, for a16z crypto, the AUM shrinkage is more a result of "making money and returning it to LPs" than "portfolio value plummeting."
Multicoin: AUM Halved to $2.7 Billion
Multicoin Capital's fate is deeply tied to the crypto market. During the 2021 crypto frenzy, its AUM nearly tripled in a year, approaching $9 billion. After the FTX crash, it plummeted directly, then gradually recovered over the next two years.
But the 2025 downturn hit it again. From 2024 to 2025, Multicoin's AUM shrank by more than half, falling to approximately $2.7 billion. Since BTC began its dive in October 2025, crypto assets have retreated across the board, and a structure like Multicoin's, which operates both a hedge fund and VC funds, was among the first to be affected.
Additional context: Multicoin co-founder Kyle Samani left the company in February of this year, shifting his focus to investing in other areas of tech.
Pantera: Five Portfolio Companies IPO, Capital Returns to LPs
Pantera Capital's AUM also shrank, but similar to a16z, part of the reason is proactive distributions to LPs.
According to sources familiar with the matter, Pantera had five portfolio companies go public in 2025, including Circle and BitGo. These exits generated significant cash returns.
Haun Ventures: The Only Firm Growing Against the Trend, AUM Up Over 30%
Amidst the widespread shrinkage, Haun Ventures is the sole exception.
The firm, founded by former a16z crypto partner Katie Haun, saw its AUM grow over 30% year-over-year, approaching $2.5 billion. This is partly due to betting on the right sector—the stablecoin company BVNK it invested in was acquired by Mastercard for up to $1.8 billion. On the other hand, Haun Ventures itself also raised a new $1 billion fund in 2025.
New Fundraising Has Already Begun
Despite AUM shrinkage, top firms haven't stopped moving forward:
Paradigm is raising a new fund of up to $1.5 billion. a16z crypto is raising up to $2 billion. Dragonfly just closed its fourth fund at $650 million. Post-publication correction from Fortune: A Dragonfly spokesperson actually responded, confirming the data is "accurate" and stating, "We are actively deploying capital."
Spokespersons for Paradigm, Pantera, a16z crypto, Multicoin, and Haun Ventures all declined to comment.
The Cyclical Fate of Crypto VCs
The original article ends here, but a few background points are worth adding.
Crypto VCs are fundamentally different from traditional tech VCs. Traditional VCs invest in equity, with exits relying on IPOs or M&A. Many crypto startups have their own tokens, exposing VC holdings directly to token price volatility.
Multicoin is the most extreme case: According to a previous Fortune report, its assets grew by 20,287% from 2017 to 2021, then retraced 90% in 2022. Such magnitude is unimaginable in the traditional VC space.
According to Pantera Capital's outlook report earlier this year, the total crypto market cap excluding BTC (and also excluding ETH and stablecoins) has fallen about 44% from its peak at the end of 2024. But following historical patterns, bear markets are also windows for buying the dip. The intensive fundraising by several top firms right now is a bet on the next cycle.
According to a previous Fortune exclusive report, a16z crypto's fifth fund is planned to complete fundraising in the first half of 2026, led by Chris Dixon, and will continue to go all-in on blockchain. Paradigm's new fund, according to The Wall Street Journal, will expand into AI and robotics. The divergence in strategy is clear: a16z continues to all-in on crypto, while Paradigm chooses to hedge across sectors.
