a16z readies $10 billion war chest to power next wave of innovation

Source Cryptopolitan

Andreessen Horowitz (a16z), one of Silicon Valley’s most influential venture capital firms, is preparing to raise $10 billion to fuel the next wave of technological innovation. The firm plans to allocate approximately $6 billion to support more mature companies, nearly doubling its previous growth fund.

Additionally, it is seeking $1.5 billion each for AI applications and AI infrastructure-focused funds, as well as over $1 billion for its “American Dynamism” initiative, which targets manufacturing and defense-related start-ups.

If the firm hits its $10 billion goal, it will mark the firm’s largest fundraising effort to date, surpassing its previous raises of $7.2 billion in 2024 and $9 billion in early 2022. The new capital will support both new investments and follow-on funding for existing portfolio companies.

Andreessen Horowitz has been backing multiple corporations

Since its most recent fundraising round, approximately 18 months ago, Andreessen Horowitz has been involved in several large startup financing deals, including investments in OpenAI and the xAI initiative.

The firm also counts Databricks, Mistral, and Black Forest Labs among its investments in AI and software. Additionally, it has been backing major tech names like Coinbase and Anduril. Considering AI startups require more capital than most, a significant portion of the new fund will be reserved for providing additional funding to Andreessen Horowitz’s existing portfolio, insiders say.

Founded in 2009 and managing $46 billion in committed capital, Andreessen Horowitz has grown to be a politically influential venture capital player, with former executives now serving in key roles in the Trump administration. The company’s former managing partner, Scott Kupor, was tapped to head the U.S. Office of Personnel Management, and Sriram Krishnan, a former partner, now serves as the White House’s top adviser on AI policy.

Meanwhile, following its seed round just six months ago, FurtherAI announced $25 million in Series A funding on Wednesday, led by Andreessen Horowitz — one of the largest early-stage investments in insurance AI. The funds will be used to accelerate product development, develop additional integrations, and grow the team of solution experts, according to the company.

CEO Aman Gour even stated that the partnership will help the company modernize an industry that’s long relied on outdated systems. He added, “We’re grateful to partner with leaders across the industry as they modernize operations.

Joe Schmidt, Partner at a16z, had also praised the insurance company, “FurtherAI is redefining how insurance gets done.”

A16z reported on a bullish outlook for crypto

On Wednesday, the firm also published its “State of Crypto 2025″ report. The firm’s latest report is broadly optimistic about the prospects of cryptocurrency, highlighting 2025 as a critical year for institutionalization, with significant developments expected in user adoption, technology, and U.S. regulation.

Cryptocurrency is now taking “its place in the economy” as an asset class, according to the report, which notes that Bitcoin represents a majority of all market value and stablecoins’ circulation volumes equivalent to those of Visa.

Over the last year, stablecoins have facilitated approximately $46 trillion in payments, surpassing PayPal’s payment volume. However, it’s limited when considering privacy, scalability, and adaptability for AI.

So far, the Californian firm has already raised more than $7.6 billion across four funds dedicated to cryptocurrency investments.

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