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March 13, 2024 | Tom Ballard

Andreessen Horowitz reportedly raising as much as $7 billion in new funding

Half of the raise — as much as $3.5 billion — would go to the firm’s fourth growth fund, while 15 percent would be dedicated to AI. .

In an article published in Crunchbase News, Chris Metinko writes that “Andreessen Horowitz, known for early bets on then-start-ups such as Facebook, Instagram, and Airbnb, is reportedly ‘weeks away’ from closing on as much as $7 billion in new funds.” The news follows this report in Axios.

According to both sources, half of the raise — as much as $3.5 billion — would go to the firm’s fourth growth fund. Andreessen Horowitz, referred to as a16z, announced its last growth fund in early 2022 at $5 billion, so the new growth fund would be significantly less.

The firm also is not raising dedicated early stage or seed stage funds, but instead splitting money by subsector with 15 percent earmarked for an artificial intelligence (AI) infrastructure fund and an AI apps fund and another 10 percent for an “American dynamism” fund which would support national interests such as aerospace, defense, public safety, education, housing, supply chain, industrials and manufacturing.

Finally, Andreessen Horowitz will also allocate 10 percent of the new fund for gaming start-ups.

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