As part of a $7.2 billion fundraising for the venture capital firm, A16Z has raised a new $600 million gaming fund.
Co-founder Ben Horowitz allocated the funds across various venture strategies, including American dynamism ($600 million), apps ($1 billion), games ($600 million), infrastructure ($1.25 billion), and growth ($3.75 billion).
In a blog post, Horowitz described the achievement as a significant milestone for A16Z. He reflected on the firm's beginnings in 2009, noting that the prevailing belief in venture capital was that only 15 companies would generate $100 million in revenue each year, driving most VC returns.
At that time, venture capital firms focused on addressing this limited market, leading to smaller fund sizes and fewer partners per fund. A16Z started with a $300 million fund and two general partners, aligning with this approach.
However, the landscape shifted shortly after the firm's inception, as Marc foresaw in his 2011 article, "Software is Eating the World." His predictions came to fruition, with nearly every major business being transformed into a software company over the past decade.
No better time to build a game startup
A16Z partner Jonathan Lai also took to Twitter to share the news of the gaming fund where he says “there’s never been a better time to build a game startup than today."
“There are more players and platforms than ever before — more tools and tech to help build games than ever before — more funding for game startups than ever before," said Lai.
He adds that the firm prioritizes early-stage founders, often providing initial funding through programs like A16z Games Speedrun. They also offer support across pre-seed to Series A/B stages and invest in game studios, game infrastructure, and consumer apps related to gaming.
After announcing its Speedrun Accelerator with $75 million up for grabs, A16Z has so far invested $1.2 billion into gaming. As Horowitz puts it, “To best serve the market, we created dedicated venture funds, each with its own team of experts and capabilities, specifically focused on each segment."
“We did this because we believe as former entrepreneurs that your investors really matter," he said.
