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)
Investors 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
Market / IPO context
Editorial / static context — not a live quote.
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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Editorial note: AI tools assisted with research, structure, or drafting. Venture Capital Tracker retains human editorial responsibility for factual accuracy, relevance, and source quality before publication.