A16Z has recently raised a new $600 million gaming fund as part of a $7.2 billion fundraising campaign. Co-founder Ben Horowitz strategically allocated this fund to 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 celebrated this achievement as a significant milestone for A16Z, reflecting on the firm’s humble beginnings in 2009. At that time, the conventional wisdom in venture capital was limited to just 15 companies generating $100 million in revenue annually, driving most VC returns.
Initially, venture capital firms operated with smaller fund sizes and fewer partners per fund to cater to this restricted market. A16Z itself started with a $300 million fund and two general partners, following this traditional approach. However, the landscape quickly evolved as predicted by Marc in his 2011 article, “Software is Eating the World.” This foresight became reality with nearly every major business transforming into a software company over the past decade.
No better time to build a game startup
A16Z partner Jonathan Lai also shared the exciting news of the gaming fund on Twitter, emphasizing that there has never been a better time than today to build a game startup. Lai highlighted the abundance of players, platforms, tools, and funding available for game startups, making it an opportune moment to enter the market.
A16Z prioritizes early-stage founders, often providing initial funding through programs like A16Z Games Speedrun. They extend 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 allocated, A16Z has already invested $1.2 billion in gaming. Horowitz emphasized the importance of creating dedicated venture funds with specialized teams focused on each segment to effectively serve the market. As former entrepreneurs, they believe that investors play a crucial role in the success of startups.
