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Andreessen Horowitz, known for making early bets on then-startup companies such as Facebook, Instagram and Airbnb, said the new funding of up to $7 billion would take “a few weeks” to close. It is being
A16z is targeting $6.9 billion as a “master feeder fund,” according to an Axios report. The company expects the $6.5 billion to $7 billion final transaction to close in early April.
Half of the proceeds, up to $3.5 billion, will go to the company’s fourth growth fund, according to the report. A16z announced its last growth fund in early 2022 at $5 billion, so there will be a significant drop in new growth funds.
The company also divides its funding by sub-sectors, rather than raising funds specifically for early or seed stages. This includes 15% in the AI Infrastructure Fund and the AI Apps Fund, as well as the American Dynamism Fund, which supports national interests such as aerospace, defense, public safety, education, housing, supply chain, industry, and industry. Includes 10%. Manufacturing industry.
10% will also be allocated to the gaming fund.
new venture market
It was just late last year that the company’s founder, Marc Andreessen, wrote the Techno-Optimist Manifesto. The 5,000-word “manifesto” essentially states that technology is the cure, not the cause, of the world’s ills, complete with a list of enemies and even a section on the “meaning of life.”
Despite the optimism, a16z has actually seen declining deal flow every quarter since Q1 2023, according to data from Crunchbase. But that streak should end this quarter.
News of the new fund comes at a time when venture firms are still struggling with an industry downturn. Earlier this week, The Information reported that Boston-based OpenView Venture Partners plans to return 75% of the $571 million in funding it raised a year ago to its limited partners. At the end of last year, the company decided to downsize its operations.
Other companies are struggling to give LPs big profits after the salad days of 2021, and there are reports that they are struggling to raise new capital. Even some large, well-established companies have had to change their funding plans in the past year to adapt to an evolving market.This year, San Francisco-based Founders Fund and New York-based Tiger and Global both announced reductions in new funds.
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Illustration: Dom Guzman
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