TLDR:
- Andreessen Horowitz is close to closing on up to $7 billion in new funds.
- The firm is targeting $6.9 billion for a “master feeder fund.”
Andreessen Horowitz, known for its early investments in companies like Facebook, Instagram, and Airbnb, is reportedly on the brink of securing as much as $7 billion in new funds. The firm is aiming for $6.9 billion for a “master feeder fund,” with a final close expected in early April. A significant portion of the raise, up to $3.5 billion, will go towards the firm’s fourth growth fund. In addition, the firm will allocate funds to specific subsectors, including AI infrastructure, AI apps, “American dynamism,” and gaming.
Despite founder Marc Andreessen’s optimistic views on technology, a16z has seen a decrease in deal flow since Q1 2023. However, with the new funds on the horizon, the firm is likely to see a rebound in deal activity. The news of Andreessen Horowitz’s fundraising efforts comes at a time when many venture firms are facing challenges in the industry, with some struggling to provide significant returns to limited partners.
Other well-established firms, such as Founders Fund and Tiger Global, have had to adjust their fundraising plans in response to market changes. Andreessen Horowitz’s latest fundraising efforts reflect both the firm’s confidence in the tech industry’s growth potential and its strategic approach to allocating capital to support various sectors of interest.
