Andreessen Follows Trend, Raises New, Larger Late-Stage Fund

Morning Markets: Andreessen Horowitz has some new vehicles it wants to show you.

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It feels like a good time to be a venture capitalist. The stock market is riding high, software companies are trading well, public investors are welcoming any number of unprofitable companies into their portfolios, and there’s plenty of money laying around looking for yield. Still.

Thus the news (first broken by Axios) that Andreessen Horowitz (a16z) has raised several new funds totaling billions of dollars is sufficiently unsurprising that you’ll forget the following figures by lunch. Per the company:

• A new venture fund, Fund VI, worth $750 million. Fund VI will focus on “early-stage enterprise to consumer and fintech,” per the firm.
• A new late-stage fund dubbed “LSV Fund I” that’s worth $2 billion. Per a16z, this is not a “growth” fund, making bets all along the Series-timescale. Instead, it’s “about late-stage venture.” That’s clear enough.

The two funds, worth $2.75 billion in total, are worth just under 30 percent of all the funds that the venture-capital-ish (more here from Forbes) company has raised, according to Crunchbase data.

Here’s where the two new funds fit in, looking at known a16z venture rounds:

So, the new growth vehicle is the largest a16z fund to date. It joins the recently announced Mary Meeker vehicle which also tips the scales north of $1 billion. And of course, there may be another Vision Fund brewing. What that means is that a16z now has a powerhouse of capital at its disposal. It just isn’t the only firm that is so-armed.

I am actually surprised that there aren’t more Cold War jokes made about the Unicorn Era venture scene. After all the new Meeker effort, Bond, raised more money than she had ever had to work with at Kleiner. One up’d.

Illustration: Li-Anne Dias.