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Andreessen Horowitz Closes In On Up To $7B In New Funds — Report

Illustration of money clip with $100 bills.

, known for early bets on then-startups such as , and , is reportedly “weeks away” from closing on as much as $7 billion in new funds.

A16z is targeting $6.9 billion for a “master feeder fund,” per the report in . The firm expects a final close in early April on between $6.5 billion and $7 billion.

Per the report, half of the raise — as much as $3.5 billion — would go to the firm’s fourth growth fund. 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. That will include 15% for an AI infrastructure fund and an AI apps fund, and also 10% for an “American dynamism” fund which would support national interests such as aerospace, defense, public safety, education, housing, supply chain, industrials and manufacturing.

There also will be a 10% allocation for a gaming fund.

The new venture market

It was just late last year when firm founder penned his “.” The 5,000-word “manifesto” basically says technology is the cure for — not the cause of — the world’s ills and comes complete with an enemy list and even a “meaning of life” entry.

Despite the optimism, a16z has actually seen its deal flow fall every quarter since Q1 2023, per Crunchbase data. However, it should stop that streak this quarter.

News of the new funds come as venture firms are still struggling with the downturn in the industry. Earlier in the week, Boston-based plans to return 75% of a $571 million fund it raised a year ago to its limited partners. Late last year the firm decided to wind down.

There have been reports that other firms have had trouble raising new funds after struggling to give LPs significant returns after the salad days of 2021. ​​Even some large, well-established firms had to change fundraising plans last year to adjust to the evolving market this year, as both San Francisco-based and New York-based announced cuts to their new funds.

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