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A16z is now managing $16.5 billion, after announcing two new funds – TechCrunch

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Andreessen Horowitz (a16z) has closed a pair of funds totaling $4.5 billion, the agency confirmed in a blog post this morning. The agency has raised $1.Three billion for an early-stage fund targeted on client, enterprise, and fintech; and closed a $3.2 billion growth-stage fund for later-stage investments. The agency didn’t instantly reply to request for remark.

The funds could seem considerably typical, on condition that size of new funds that enterprise corporations have been elevating lately, Nonetheless, these are extraordinary quantities given {that a}16z, with workplaces in Menlo Park and San Francisco, was based simply 11 years in the past.

As extraordinary, they convey the agency’s complete belongings below administration to $16.5 billion.

It was simply 20 months ago that 16z closed its most up-to-date pair of funds — a $2 billion late-stage fund, and a $740 million flagship early-stage fund.

It additionally introduced a separate, $515 million crypto-focused fund again in April of this yr, its second such automobile. And, in February, it rolled out its third biotech and healthcare investing fund, which closed with $750 million in capital commitments.

That’s a number of capital to seize in a single yr. Then once more, its restricted companions have had purpose to really feel optimistic about its portfolio. In January, for instance, the fintech firm Plaid, whose Collection C spherical a16z joined in late 2018, was acquired by Visa for a hefty $5.Three billion after elevating roughly $310 million altogether. The Justice Division recently sued to block the deal on antitrust grounds, however even when it’s unwound, trade observers like Plaid’s prospects.

The agency can also be an investor within the soon-to-be-publicly traded lodging market Airbnb, although notably, in response to Airbnb’s S-1, a16z doesn’t personal sufficient of the corporate to be listed on the submitting, regardless of that it led the company’s Series B round in 2011 and regardless of that normal companion Jeff Jordan sits on the corporate’s board and would wish to checklist any possession place in consequence.

We’ve requested if it bought a part of its stake, possibly earlier this year. We’re nonetheless awaiting phrase again.

One other of a16z’s portfolio corporations, the pay-as-you-go lending firm Affirm, has additionally filed to go public. Andreessen Horowitz first participated within the firm’s Collection B spherical again in 2015. Additionally it is not listed on Affirm’s S-1 submitting, that means it owns lower than 5% of the corporate.

The agency can also be an investor within the recreation firm Roblox, whose $150 million Collection G spherical it led earlier this year. Roblox made its S-1 public simply earlier this week; a16z is just not listed on it.

Its greatest win up to now might be Github, which bought to Microsoft in a $7.5 billion all-stock deal in 2018 and from which a16z reportedly pocketed more than $1 billion. When it invested within the firm, it wrote the largest test it had issued on the time: $100 million. The deal was sufficient for a16z to win the deal in opposition to some powerful competitors, together with Benchmark, whose normal companion, Peter Fenton, has said was additionally attempting to woo Github on the time,

On the early-stage facet, the agency is usually characterised by its flashy offers, together with its $100 million valuation of voice-chat app Clubhouse and $75 million valuation of Y Combinator graduate Trove.

 

A16z additionally just lately launched a TxO accelerator, which makes use of a donor-advised fund to put money into underrepresented founders. Led by a16z companion Nait Jones, TxO has invested $100,000 every in an preliminary cohort of seven companies in change for 7% of possession stake.

The donor-advised fund launched with $2.2 million in initial commitments, with Ben and Felicia Horowitz saying that they might match as much as $5 million. Any returns from corporations within the fund will likely be repurposed into the funding automobile. The agency has declined to share the fund’s complete dimension up to now.

At the moment, a16z employs 185 folks, most just lately hiring Anthony Albanese, the chief regulatory officer on the New York Inventory Change, as an working companion for its cryptocurrency staff.

 

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Author

Natasha Mascarenhas