Startup profile · funding coverage
Entropy
Decentralized crypto custody and automations startup — winding down and returning capital to investors (Jan 2026).
Stage
See coverage
Status
shutdown
Coverage
full
Why Entropy is interesting
Entropy raised a $25M a16z-led seed for MPC-based self-custody, pivoted to crypto workflow automation, then shut down when the model couldn't reach venture scale — a cautionary crypto infrastructure story.
Key facts
- Shutdown (Jan 2026): founder announced wind-down and capital return after failing to reach venture-scale model (CoinTelegraph / The Block)
- Seed (Jun 2022): $25M led by a16z crypto; Dragonfly, Variant, Coinbase Ventures named (The Block)
- Co-investors not in VCT directory: Dragonfly, Variant, Coinbase Ventures, Robot Ventures
Investors in our directory
Funds linked from Entropy's profile — open a fund page for stage focus and related deal articles.
Industries
Crypto & Web3 Cybersecurity
Industry hub pages are rolling out from our fund-derived baseline taxonomy.
Related funding articles
Venture Capital Tracker pieces that cover Entropy's financing or category context.
FAQs about Entropy
Funding context and why this company shows up in venture coverage.
Entropy started as decentralized crypto custody using multiparty computation, then pivoted to crypto workflow automation with AI integrations before shutting down.
Andreessen Horowitz (/fund/andreessen-horowitz) led Entropy's $25M seed round in 2022.
In January 2026, founder Tux Pacific announced Entropy would wind down and return remaining capital to investors after multiple pivots.
Pacific cited an inability to find a venture-scale business model after four years, two layoff rounds, and several product pivots.
No — Entropy is winding down as of January 2026.
Last updated: 2026-07-24