Andreessen Horowitz raises $9B in new capital for venture, growth, bio funds – TechCrunch

Andreessen Horowitz, a powerful private market owner, announced this morning that it has closed $9 billion in new capital for its venture capital, growth stage, and biotech-focused vehicles.

The company, better known by its nickname a16z, raised $2.2 billion last year, funds focused on cryptocurrencies.

The fundraising by the company highlights the growing volume of private market investment vehicles that we tend to group under the venture capital banner, and the burgeoning capital base of a16z itself.

Looking back, the group’s last generation of funds — including its seventh $1.3 billion co-investment fund, its second $3.2 billion growth fund, and its third $750 million bio-focused fund — were worth more than half. The last one. Total fundraising. So it looks like a16z isn’t just reloading, it’s raising more capital than ever for its usual crop of focus points.

It should come as no surprise that the group is raising larger pools of venture capital. Her first crypto fund was $300 million, her second was $515 million, and her last was nearly four times that amount. As an investment group, a16z like many private market investors put more capital to work for each new crop of new funds.

The trend towards larger funds is generally believed to be a contributing factor to larger startup funding rounds, and some pressure in terms of access to deals (harder) and startup valuations (higher).

To underscore just how big a fund and venture capital can be today, remember that Norwest Venture Partners closed a $3 billion fund last month. This brought the group’s total capital raised “through contracts,” as Connie Lewisz put it, to $12.5 billion. Therefore, a significant part of the company’s historical capital was raised only in the last quarter.

It’s a capitalist arms race in private markets, where enthusiasm for traditional technology companies (software, etc.) and frontiers (cryptography, quantum computing, metaverses, etc.) remains hot. The public markets taking a slightly different trajectory in recent weeks does not appear to have slowed the venture capital firm’s side of the fundraising coin. Not yet at least.

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