Andreessen Horowitz, a leading venture capital firm, announced on Tuesday that it has raised $7.2 billion across five different funds. It is seen as a sign of optimism in the tech startup world, which has experienced a lack of significant exits over the past two years.
The largest portion of the new funding, $3.75 billion, is allocated to Andreessen Horowitz’s growth fund. This fund invests in later-stage companies that are closer to going public or capital-intensive businesses that require substantial funding. The firm also dedicated $1.25 billion to infrastructure, which includes artificial intelligence investments, $1 billion to app investments, $600 million to games, and another $600 million to what the firm calls American Dynamism. This last category includes founders and companies that support the national interest, such as those in aerospace, defense, education, and housing.
Despite the broader market downturn, Andreessen Horowitz has managed to raise substantial funds. Since 2021, when tech IPOs and startup investing surged to a record, venture investors have become more cautious. Rising inflation and interest rates in 2022 pushed investors away from risky assets and forced cash-burning startups to dramatically cut costs. Even with the stock market recovering, venture deals have remained depressed.
However, Andreessen Horowitz did not announce any further fundraising for its crypto arm. This is noteworthy given the firm’s previous bullish stance during the crypto craze that lifted Bitcoin to a record in 2021.
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