Andreessen Horowitz just raised $4.5 billion in two new mega funds, helping 2020 become a record-breaking year
Andreessen Horowitz general partner Marc Andreessen, who cofounded the legendary firm in 2009.
Photo by Steve Jennings/Getty Images for TechCrunch
- Andreessen Horowitz just closed two enormous new funds. One of them is its largest ever, a $3.2 million growth fund.
- The other is a $1.3 billion early-stage fund.
- The new funds helped make 2020 the biggest year yet for US venture fundraising, putting the total number at a record $69.1 billion.
- Seven of Andreessen Horowitz’s portfolio companies have gone or are going public this year, including Airbnb, Instacart, and Robinhood.
- The firm now manages a total of $16.5 billion in assets.
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Andreessen Horowitz (a16z) has closed two new mega funds totalling $4.5 billion, bringing its total assets under management to nearly $16.5 billion, it announced in a blog post Friday.
Those new funds helped make 2020 the biggest year yet for venture fundraising in the US, putting the total raised at a record $69.1 billion in spite of a global pandemic and economic slowdown, per Pitchbook data.
The new funds include a $1.3 billion early-stage fund (Fund VII) focused on consumer, enterprise, and fintech, and a second, $3.2 billion growth fund (Growth II) to target more mature companies. That $3.2 raise was a record-breaking fund for the venture firm, surpassing the $2 billion Late Stage Venture Fund 1 it debuted last year, according to Pitchbook.
This is not the largest fund ever to be raised by a Silicon Valley venture firm, however. Sequoia Capital set a Silicon Valley record when it raised an $8 billion fund a couple of years ago. Still a16z’s nearly $16.5 billion in assets is impressive considering it was founded only 11 years ago. In comparison, Sequoia was founded in 1972.
The company did not immediately return Business Insider’s request for comment.
The firm’s limited partners investors have good reason to feel optimistic about a16z’s investing acumen. Seven of the firm’s portfolio companies have gone public recently or will do soon: Airbnb, Roblox, Instacart, Asana, Robinhood, Accolade, and Affirm.
Andreessen Horowitz may also benefit from Visa’s acquisition of fintech company Plaid, whose Series C round it joined in late 2018. Visa bought the company for $5.3 billion, though that deal is now up in the air after the Justice Department sued to block the deal on antitrust grounds.
The two massive funds reveal another, perhaps worrying trend in the venture industry: that capital is consolidating towards established venture firms at the expense of smaller and first-time funds.
The 2020 fundraising record was set by just 287 funds, compared with 589 funds in 2018, the year that held the old US fundraising record of $67.8 billion, Pitchbook said.
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