Why a16z Frontier Is Good for Crypto By now you’ve seen that a16z Crypto is rebranding to a16z Frontier and widening its mandate beyond crypto. You’ve also seen the backlash. I take the view that this is net positive for the industry: 1. The groundwork is largely done: Nobody needs another Layer 1 and the surviving middleware infrastructure (such as DEXs) has gone multi-chain. The opportunity moved up the stack to applications and the capital should follow. 2. Crypto investing is now equity investing: With infrastructure settled, deals are increasingly equity in companies rather than tokens in protocols. Equity requires fundamentals and domain expertise that extends beyond pure crypto investing. 3. Refocusing on the App Layer: As the Layer 1 and middleware problems get resolved, the application of decentralized networks and cryptography naturally ascends the stack. So far the killer apps are few: stablecoins (proven), prediction markets (proven), tokenization (ehh), and memes (for better or worse, yes). Beyond those we’ve struggled to find use cases, and my view is that the next ones will have to come from outside the insular periscope of crypto. Many have dismissed intersections like crypto x AI, compute markets and distributed spatial computing as snake-oil slop, but beneath the surface sits enormous opportunity. 4. More Intersections: AI has done a great job broadening LLMs into other industries, including law (Harvey, Legora) and healthcare (Abridge). Crypto has struggled to do the same. In those AI companies, the model is internal plumbing and the application focuses on solving a problem with a beautiful interface. Crypto must do the same, where stablecoins, cryptography and public blockchains are the feature and not the product. 5. Expanding the investment scope and the co-investor base: I’ve spent the past two years investing in both AI and crypto. For 90% of AI investors and crypto investors there is an odd dissonance and almost no collaboration, and founders at the intersection pay for it. Crypto funds ask where the token is, AI funds won’t touch chains, and the best companies I see sit in that gap. The two networks are far apart today and I expect them to meld. This looks harsh from the outside, but it may be exactly the signal the industry needed.