Andreessen Horowitz Raising Huge New $900 Million Fund III

You can’t accuse Andreessen Horowitz of spending money too slowly. Their first fund, $300 million, was raised in 2009 and was promptly invested in companies like Skype and Fusion.io. In late 2010 they raised Fund II, a $650 million monster (Groupon, Airbnb, Twitter, Facebook, Zynga, etc.), followed in mid 2011 with a $300 million annex fund (which makes follow on investments from the earlier fund it’s tied to).

That’s a whopping $1.25 billion under management. Andreessen Horowitz is not yet two and a half years old.

Now, double that. The firm is in the early stages of raising a third fund that, says a source who’s seen the documents, will have a target size of $900 million. That’ll mean the firm will have $2.15 billion under management shortly.

If they subsequently raise an annex fund, add another half billion or so to that.

That’s a lot of cheddar.

Recently Andreessen Horowitz has said that they’ve invested in 70 or so companies, about half of them are seed stage investments under $200,000 or so. The new fund will have flexibility to make investments ranging anywhere from $10,000 to $100 million.

22 thoughts on “Andreessen Horowitz Raising Huge New $900 Million Fund III

  1. What’s this about a bad economy?

  2. Jay Zalowitz says:

    Large fund, Nimble…. investment oppourtunity thesis.

  3. Jason Tan says:

    They are the 99%… of funds available

  4. Heh. When they launched they said they would make investments ranging from “$50,000 to $50 million”. Guess they wanted to squeeze an extra order of magnitude out of that.

  5. I wonder if it’s a good time for entrpereneurs to raise money? :)

  6. John Best says:

    I’m totally starting the rumour the new fund is to buy Greece.

  7. eindlich! crisis is over and we can start it all over again! btw, I need some hondos for my biz!

  8. Achin Sharma says:

    damn.. and i was worried if i get into YC this session :O

  9. Wow! And they say the economy is bad.

  10. mark says:

    how does the economy and a single fund raise have anything in common?

  11. Guest says:

    What’s their realized track record on the first two funds? Not unrealized, but actual cash on cash.

  12. DM says:

    As a former VC Fund of Fund investor, I have seem this movie before: The 1998 Fund had a great IRR that dropped over time (…the ROI ended in 2000); the 1999 Fund lost (a lot) of money; the 2000 Fund took 10 years to play out and (hopefully) you got your money back.

  13. Daniel Kim says:

    That is a lot of $$$ in management fees. I see a new corporate jet in the firms future.

  14. Davey says:

    How do you invest in their fund?

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