Venture capital firm Andreessen Horowitz, also known as a16z, raised $7.2 billion for its newest set of funds to invest across several tech sectors globally.
- About half of this capital, $3.75 billion, will be aimed for its Growth Fund, a late-stage fund investing in market-leading tech companies.
- Other funds raised, rather than dedicating them to seed or early-stage funds, a16z diversifies across sectors. Specifically, it secured $1.25 billion for AI infrastructure allocation, $1 billion for AI apps (Consumer, Enterprise, Fintech).
- Lastly, the remaining $1.2 billion will be evenly split. The half will go towards the American Dynamism fund, which will focus on investing in founders that are contributing to the US aerospace, defense, safety, education and manufacturing.
- Another $600 million will be used to create a16z Games Fund II.
“This is an all-new, next generation fund that is dedicated to the intersection of TECH x GAMES. We are excited to invest this new fund across many stages and sectors, from inception to Series A/B. From AI/infra, web3 games, VR/AR, 3D tooling, gamified apps, game studios, and much more. The fund targets a $300B+ industry that has spawned incredible companies over the past decade, and it’s great to be able to build,” Andrew Chen, a General Partner at a16z, provided details to X.
- The a16z $4.5 billion crypto-focused fund didn’t receive any additional funding.
- As a16z co-founder Ben Horowitz said in his statement, each focus fund will have its own dedicated experts:
“Each area requires deep expertise, so it’s not wise to try to cross-train someone in, for example, Games and Infrastructure. More importantly, founders building AI foundation models need an entirely different set of networks and capabilities than founders building biotech therapies,” he emphasized.
