The flagship crypto fund for venture-capital firm Andreessen Horowitz's, which is also known as a16z, has cratered by more than 40% in the first half of this year, the Wall Street Journal reported Wednesday, citing people familiar with the matter.

The firm established its fourth crypto fund in May – its largest yet at $4.5 billion, with over $7.6 billion being raised in total across all funds.

The new fund was formed during a downturn in the cryptocurrency market, with the largest assets like bitcoin (BTC) and ether (ETH) shedding over 70% of their value since the fourth quarter of 2021. Speculative assets that focus on decentralized finance (DeFi) and Web3 have been hit even harder, with several plunging 90% in less than a year.

Andreessen Horowitz has been far less prolific in its investments this year, making just nine crypto investments in the third quarter of this year, compared with 26 deals in the fourth quarter of last year, according to Pitchbook.

Chris Dixon, founder of a16z's crypto arm, told the Wall Street Journal that he remains unperturbed by the fall in crypto prices.

“What I look at is not prices. I look at the entrepreneur and developer activity,” he said.

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