Andreessen Horowitz (a16z) has closed two funds totaling $ 4.5 billion, the company confirmed in a blog post this morning. The company raised $ 1.3 billion for an early-stage fund focused on consumers, businesses and fintech. and closed a $ 3.2 billion growth fund for future investments. The company did not immediately respond to the request for comment.
The funding may seem a bit typical given the size of the new funding venture firms have raised in recent years. Even so, these are exceptional amounts as a16z was only founded 11 years ago with offices in Menlo Park and San Francisco.
Equally exceptional, the company has total assets under management of $ 16.5 billion.
Just 20 months ago, a16z closed its latest pair of funds – a $ 2 billion late-stage fund and a $ 740 million flagship early-stage fund.
Back in April of this year, the company announced a separate $ 515 million crypto-focused fund, the second such vehicle. The third biotechnology and healthcare mutual fund was launched in February, closing with $ 750 million in capital commitments.
That's a lot of capital that has to be captured in a year. On the other hand, the limited partners had reason to be optimistic about their portfolio. In January, for example, the fintech company Plaid, whose Series C round a16z had joined in late 2018, was acquired by Visa for a whopping 5.3 billion US dollars, after a total of around 310 million US dollars had been raised.
The Justice Department recently sued to block the deal on antitrust grounds, but even if it is wound down, industry watchers like Plaid's prospect.
The company is also an investor in the soon-to-be-listed Airbnb accommodation market, although a16z doesn't own enough of the company to be on the record, according to Airbnb's S-1, despite citing the company's Series B in year In 2011 and despite this general partner, Jeff Jordan sits on the company's board of directors and should therefore list every owner position.
We asked if it sold some or all of the stake, possibly earlier this year, and are waiting for feedback.
Another a16z portfolio company, the pay-as-you-go loan company Affirm, has also filed to go public. Andreessen Horowitz took part in the company's Series B for the first time in 2015. It's also not listed on Affirm's S-1 filing, meaning it owns less than 5% of the company.
And the company is an investor in the games company Roblox, whose $ 150 million Series G round it led earlier this year. Roblox released its S-1 earlier this week. a16z is not listed on it.
In the early stages, the company is often marked by flashy deals, including the $ 100 million rating of the voice chat app Clubhouse and the Y Combinator Trove graduate rating of $ 75 million.
A16z recently launched a TxO accelerator that uses a donor-recommended fund to invest in under-represented founders. Under the leadership of a16z partner Nait Jones, TxO has invested US $ 100,000 each in a first cohort of seven companies in order to obtain 7% of the shares.
The donor advised fund was launched with initial commitments of $ 2.2 million. Ben and Felicia Horowitz announced that they would raise up to $ 5 million. All returns from companies in the fund are converted into the investment vehicle. The company has so far refused to share the total size of the fund.
A16z currently employs 185 people and most recently hired Anthony Albanese, Chief Regulatory Officer at the New York Stock Exchange, as an operational partner for its cryptocurrency team.
One of a16z's biggest wins appears to be GitHub, which was sold to Microsoft in a $ 7.5 billion all-stock deal in 2018 and which a16z reportedly pocketed more than $ 1 billion from. When it invested in the company, it wrote the largest check it had written at the time: $ 100 million. Conditions were enough for a16z to win the deal against tough competition, including Benchmark, which at the time was also trying to advertise GitHub, as General Partner Peter Fenton recently said.
It's also an early investor in the Coinbase cryptocurrency exchange, which was last valued at $ 8 billion by its private investors and is reportedly considering an IPO, possibly early next year. And a16z has a stake in Robinhood, the popular trading app that was valued at $ 11.7 billion in September.
Robinhood is also set to consider going public in the near future.