Andreessen Horowitz (a16z), a venture capital firm, has announced that it has raised $7.2 billion to invest in various technology sectors, including gaming and artificial intelligence. However, the firm will not be allocating any additional funds towards cryptocurrency.
The largest portion of the raised funds, $3.75 billion, will be allocated to the firm’s “Growth” venture strategy, which supports early-stage startups. The “Infrastructure” and “Apps” strategies will receive $1.25 billion and $1 billion respectively, according to a statement released by a16z on April 16.
The Infrastructure strategy primarily focuses on funding teams in the AI, computing, and data industries, while the Apps funds are dedicated to supporting consumer, enterprise, and fintech application builders.
The remaining $1.2 billion will be evenly divided between the firm’s gaming-focused “Games” fund and its new “American Dynamism” fund, which invests in founders and companies that support United States national interests in aerospace, defense, safety, education, and manufacturing.
However, a16z’s $4.5 billion crypto-focused fund will not receive any additional funding.
Andrew Chen, a general partner at a16z who oversees the Games Fund One, stated that the $600 million dedicated to Games will be used to establish a second game-focused fund. Chen emphasized that the fund will target the $300 billion+ gaming industry, which has seen the emergence of remarkable companies in the past decade. He also expressed a particular interest in funding games that integrate generative AI.
A portion of the $600 million will also be utilized in a16z’s accelerator program, which was launched in early April. The program will provide $750,000 to a maximum of 40 gaming startups during a 12-week course in Los Angeles, starting in late July.
Ben Horowitz, the co-founder of a16z, highlighted that each focus fund will have its own experts to increase the chances of success. He explained that deep expertise is required in each area, and it is not advisable to try to cross-train someone in different sectors. For example, founders building AI foundation models need a completely different network and skill set compared to those building biotech therapies.
In related news, “Web3 Gamer” magazine reported that gaming is expected to attract “tens of millions” of participants to the Web3 space by 2024, according to executives in the GameFi industry.
Overall, a16z’s significant fundraising efforts and strategic allocation of funds across various technology sectors demonstrate the firm’s commitment to supporting innovation and growth in these industries.