Andreessen Horowitz (A16Z) has closed a pair of funds totaling $ 4.5 billion, the firm confirmed in a blog post this morning. The firm has raised $ 1.3 billion for an initial phase focused on consumer, enterprise and fintech; And closed a $ 3.2 billion development-stage fund for later-stage investments. The firm did not immediately respond to a request for comment.
The funds may seem somewhat specialized, given that the size of the new funds has been increased by venture firms in recent years. Nevertheless, these are given in extraordinary quantities that a16z, with offices in Menlo Park and San Francisco, was established just 11 years ago.
As an extraordinary, they bring the firm’s total assets under management to $ 16.5 billion.
It was just 20 months ago that a16z closed its most recent pair – a $ 2 billion late-stage fund, and a $ 740 million flagship early-stage fund.
It announced a separate $ 515 million crypto-focused fund in April, the second such vehicle. And, in February, it started its third biotech and healthcare investment fund, which closed with $ 750 million in capital commitments.
There is a lot of capital to occupy in a year. Again, its limited partners have reason to feel optimistic about its portfolio. In January, for example, the fintech company Plaid, whose Series C round a16z joined in late 2018, was acquired by Visa for $ 5.3 billion after raising a total of approximately $ 310 million.
The Department of Justice recently sued Antitrust Ground to halt the deal, but even if it was unfounded, industry observers like Plaid’s prospects.
The firm is also an investor in the soon-to-be-publicly-traded housing market Airbnb, although, specifically, according to Airbnb’s S-1, the a16z company does not have enough to be listed in the filing, despite this Led the company’s Series B round in 2011 and despite that General Partner Jeff Jordan sits on the company’s board and will consequently need to list any ownership positions.
We have asked if it sold part or all of its stake earlier this year, and word is waiting to return.
One of the portfolio companies of A16z, Pay-as-You-Go Lending Company Affirm: Also filed for public. Andreessen Horowitz first competed in the company’s Series B round in 2015. It is also not listed in the firm’s S-1 filing, meaning it owns less than 5% of the company.
And the firm is an investor in the game company Roblox, whose $ 150 million Series G round led to it earlier this year. Roblox made its S-1 public earlier this week; A16z is not listed on it.
Towards an early stage, the firm is often characterized by its lucrative deals, including a $ 100 million valuation of the voice-chat app Clubhouse and a $ 75 million valuation of Y Combinator Graduate Trove.
A16z has also recently launched a TxO accelerator, which uses donor-aided funds to invest in underrated founders. TxO, led by A16z partner Nait Jones, has invested $ 100,000 in initial collaboration with seven companies in exchange for a 7% ownership stake.
A donor-advised fund launched with $ 2.2 million in initial commitments, with Ben and Felicia Horowitz announcing they would match up to $ 5 million. Any returns of the companies in the fund will be returned to the investment vehicle. The firm has refused to share the total size of the fund to date.
Currently, a16z employs 185 people, most recently hiring Anthony Albanese, chief regulatory officer at the New York Stock Exchange, as an operating partner for its cryptocurrency team.
One of A16z’s biggest wins so far appears to be GitHub, which sold to Microsoft in a $ 7.5 billion all-stock deal in 2018 and of which a16z reportedly earned more than $ 1 billion. . When he invested in the company, he wrote the largest check issued at the time: $ 100 million. Conditions were crucial enough to win the deal against some tough competition, including Benchmark, which was trying to woo GitHub at the time, as recently stated by Peter Fenton.
It is also an early investor in the cryptocurrency exchange Coinbase, which was last valued at $ 8 billion by its private investors and is reportedly considering an IPO, possibly early next year. And owns a stake in A16z Robinhood, the popular trading app worth $ 11.7 billion in September.
Robinhood is also considered an IPO in the near future.