Andreessen Horowitz (a16z), a venture capital firm, has unveiled its plan to invest $30 million in gaming startups that focus on technology, including AI, VR/AR, and Web3 games. Andrew Chen, the general partner overseeing a16z’s Games One Fund, stated that they are investing in the intersection of technology and games, which includes areas like AI infrastructure, 3D tools, VR/AR, web3 games, and gamified consumer apps.
The $30 million investment will be distributed over the next 45 days through a16z’s early-stage accelerator program called “SPEEDRUN.” Each startup that participates in the program will receive $750,000. The program spans 12 weeks and provides participants with financial support, industry coaches, mentors, and a community of ambitious founders.
Chen emphasized that a16z is open to a variety of startups, ranging from those in the ideation phase to those with established products and revenue. However, competition for admission into the SPEEDRUN program is fierce, with only 1% of applicants accepted in the last cohort. Nevertheless, Chen revealed that 80% of companies from the program’s first cohort successfully secured funding from investors after Demo Day.
Interested startups must submit their applications by May 19, and the 12-week course will take place in Los Angeles, California, from July 29 to October 20, 2024.
Several Web3 gaming startups have emerged from a16z’s SPEEDRUN program, including Matchday, a soccer-themed game, and Promodium, a nonfungible token-based game.
Chen also manages a16z’s $600 million Game Fund One, launched in 2022, which includes investments in popular gaming companies like Roblox, Sandbox, and Sky Mavis, the creators of the blockchain game Axie Infinity.
Additionally, a16z has invested in blockchain-based gaming startups through its cryptocurrency division, including Mythical Games, Yield Guild Games, Azra Games, CCP Games, NOD games, and Voldex.
According to a report by Fortune Business Insights, the Web3 gaming market is expected to grow from $154 billion to $614 billion by 2030, with a compound annual growth rate of 21.8%.
The magazine Web3 Gamer recently featured an interview with the CEO of Illivium, who admits that incorporating bots into games is challenging but holds significant potential for growth, with a potential upside of 42X.