Andreessen Horowitz (a16z) has announced the formation of its first gaming fund, with intentions to invest $600 million in game studios, gaming-related consumer apps, and infrastructure.
“Today, we are proud to announce GAMES FUND ONE, a16z’s inaugural fund dedicated to building the future of the games industry. Having been investors in this space for more than a decade, it’s clear to us the industry has entered a new era, and there is no better time than now to build a fund focused on supporting the next generation of games builders,” Andrew Chen, Jonathan Lai, and James Gwertzman of the a16z team created a blog entry about it.
The fund, Games Business ONE, is “based on the conviction that games will play a vital role in determining how we socialize, play, and work over the next century,” according to the company. It also stated that it believes gaming infrastructure and technologies would be crucial building elements of the Metaverse in the long run, an opportunity that it believes might be far larger than the current $300 million game business.
David Baszucki, co-founder of Roblox; Jason Citron, co-founder of Discord; Marc Merrill, co-founder of Riot Games; Mike Morhaime, co-founder of Blizzard; Aleks Larsen and Jeffrey Zirlin, co-founders of Sky Mavis; Kevin Lin, co-founder of Twitch; Mark Pincus, founder of Zynga; and Riccardo Zacconi, founder of King are among notable gaming industry investors in.
A16z is not a crypto-native company, but it has grown to be one of the most prominent names in the industry. The firm set aside $2.2 billion for its third crypto fund last summer, making it the largest crypto fund in history until Paradigm revealed its $2.5 billion vehicle in November.