Startup profile · funding coverage
Entropy funding, valuation and investors
Decentralized crypto custody startup — shut down and returned capital (Jan 2026).
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Funding, valuation & investors
Answer-first snapshotLatest funding
Seed
$25M · June 2022
Latest known valuation
Not publicly disclosed
Total disclosed equity funding
$25M
Excludes debt, grants, acquisitions, secondaries, and IPO proceeds.
Current status
shutdown
Stage not recorded · San Francisco, California
Investors in latest funding
Lead: Andreessen Horowitz
Overview
Entropy built decentralized custody using multiparty computation, later pivoting to AI-integrated crypto automation workflows. Raised $25M seed in June 2022 led by a16z crypto with Dragonfly, Variant, and Coinbase Ventures participating. Founder Tux Pacific announced wind-down in January 2026 with capital return to investors after failing to reach venture-scale model.
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.
Product & use cases
Initially MPC-based decentralized custody; later pivoted to AI-integrated crypto automation workflows before shutdown.
- Self-custody key management via multiparty computation (original)
- Crypto workflow automation (pivot)
- Institutional-grade decentralized custody (intended)
Key facts
- Shutdown (Jan 2026): founder announced wind-down and capital return (CoinTelegraph)
- Seed (Jun 2022): $25M led by a16z crypto (The Block)
- Co-investors not in VCT: Dragonfly, Variant, Coinbase Ventures
Funding history (newest first)
Seed
2022-06 $25MInvestors in our directory
Funds linked from Entropy's profile — open a fund page for stage focus and related deal articles.
Competitive landscape
Edge: MPC custody approach was technically differentiated — but market didn't support venture-scale outcome.
Crypto custody is dominated by Fireblocks and Copper for institutions. Entropy's decentralized approach couldn't find sustainable venture-scale economics.
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Fireblocks incumbent
Institutional crypto custody at scale.
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Copper direct
Institutional crypto custody.
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Fordefi direct
MPC wallet infrastructure.
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Safe (Gnosis) adjacent
Smart contract wallets for self-custody.
Notable stories
- Founder Tux Pacific announced Entropy's shutdown in January 2026, returning capital to investors — rare honest wind-down in crypto (CoinTelegraph).
Industries
Related funding articles
Venture Capital Tracker pieces that cover Entropy's financing or category context.
FAQs about Entropy
Practical answers founders, operators, and investors typically search for.
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