Andreessen Horowitz completed one of the largest fundraising campaigns in venture capital Friday – a whopping $9 billion raise to invest across its various funds.
The money will be dispersed across three new divisions, the firm revealed, with more than half targeted to growth funds in mature startups. According to the company, approximately $1.5 billion will be set aside for a Bio fund, $5 billion for the Growth fund, and $2.5 billion in its Venture fund.
Coupled with its $2.2 billion Crypto Fund and $400 million Seed Fund the firm raised in 2021, Andreesen Horowitz (also known as a16z) said the combination will help the company continue to invest across the entire spectrum of stages, writing checks as small as $25,000 and up to hundreds of millions of dollars.
Money in the bank, Andreessen Horowitz’s total assets under management is now more than $28 billion.
“It is our role and mission to help these entrepreneurs build the best companies they can and achieve their important goals,” said Ben Horowitz, co-founder and general partner of Andreessen Horowitz in a blog post.
Looking at the firm’s track record, a massive funding overhaul isn’t a surprise; however, Friday’s release is nearly twice as large as its last three funds combined.
Its last massive raise in November of 2020 saw its seventh venture fund collect $1.3 billion – an early-stage fund intended to invest in consumer, enterprise and financial services technologies. That raise also included $3.2 billion for a later-stage fund that invests across all of the core a16z vertical domains: consumer, enterprise, financial technology, bio and crypto.
Interestingly enough, Friday’s $1.5 billion set aside for biotechnology is twice the size of its previous bio round, emphasizing the firm’s interest in the health care, biotech and pharmaceutical sectors. At the time of segment’s previous raise, the firm’s managing director said “bio is now officially the hot new thing.”
The venture-capital firm incorporated an entity called AH Bio Fund IV LP in October, according to Delaware state filings.
“We see entrepreneurs every day with potential solutions ranging from a fairer creative economy to better education for low income students to cures for cancer,” Horowitz said. “We never know which of these will work and that’s why we value the people who bet their careers and their lives on solving these problems.”