Andreessen Horowitz raises $7.2B for new venture funds

Venture capital firm Andreessen Horowitz (a16z) announced that it raised $7.2 billion to invest across various technology sectors, including gaming and artificial intelligence. However, it is not allocating any more resources towards cryptocurrencies.

The firm's "Growth" venture strategy, which consists of funds backing a range of early-stage startups, will receive the largest portion of the raise, amounting to $3.75 billion. Its "Infrastructure" and "Apps" strategies will receive $1.25 billion and $1 billion, respectively, as stated in an April 16 press release.

The Infrastructure strategy mainly focuses on funding teams in the AI, computing, and data industries, while the Apps funds target consumer, enterprise, and fintech application developers.

The remaining $1.2 billion will be equally divided between "Games," its gaming-focused funds, and its new "American Dynamism" fund, which invests in founders and companies supporting United States national interests in aerospace, defense, safety, education, and manufacturing. The $4.5 billion crypto-focused fund did not receive any additional funding.

$600 million of the total amount will be allocated to the firm's Games Fund One, which will create a second game-focused fund. This was announced by Andrew Chen, a general partner at a16z, who oversees the Games Fund One.

"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," Chen wrote on X on April 16.

Chen also emphasized his focus on funding games that integrate generative AI.

A portion of the $600 million will be used in a16z's accelerator program, which began in early April and will provide up to $750,000 to a maximum of 40 gaming startups during a 12-week course in Los Angeles starting in late July.