a16z-backed Entropy announces shutdown, will return remaining funds to investors

Techub News, according to The Block, reports that a16z-backed decentralized custody startup Entropy announced it will shut down and return remaining funds to investors. Company founder and CEO Tux Pacific stated that after approximately 4 years of operation, several business pivots, and two rounds of layoffs, the team failed to find a business model that met venture capital scale. Entropy completed a $25 million seed round led by a16z crypto in June 2022, with cumulative fundraising reaching approximately $27 million. The company initially positioned itself as a decentralized alternative to centralized custody solutions, later pivoting towards a crypto automation platform direction.