# Entropy

> Decentralized crypto custody and automations startup — winding down and returning capital to investors (Jan 2026).

## Why it 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.

## Profile

- **Stage:** other
- **Status:** shutdown
- **Industries:** crypto-web3, cybersecurity
- **Coverage:** full
- **Last updated:** 2026-07-24

## 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

- https://venturecapitaltracker.com/fund/andreessen-horowitz

## Related articles

- https://venturecapitaltracker.com/2026-a16z-hot-portfolio-companies

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Source: https://venturecapitaltracker.com/startup/entropy