TLDR:
- Andreessen Horowitz raises $7.2 billion in new fundraise, focusing on AI startups.
- More than half of the fund will be allocated to the growth fund for late-stage companies.
Venture capital giant Andreessen Horowitz has raised a staggering $7.2 billion for its new fund, with a significant portion earmarked for investments in artificial intelligence (AI) startups. The fund includes $3.75 billion for the fourth growth fund, mainly targeting late-stage companies at crucial growth points. Andreessen Horowitz is allocating over $2 billion for AI infrastructure and applications. Despite the AI hype, overall venture capital investments have declined by 30% in the first quarter of 2024 due to rising interest rates affecting the industry.
The Menlo Park-based firm is refraining from further investments in the cryptocurrency sector for now. Previously, it launched a $4.5 billion cryptocurrency-focused fund in 2022 to support Web3 projects during a bear market. Notable companies backed by Andreessen Horowitz in the crypto space include Coinbase, Uniswap, and OpenSea. Although the firm recently announced a $100 million investment in crypto staking startup EigenLayer, it has not deployed the majority of its fund due to the crypto market downturn in 2023.
