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.
Man I need funding.
No you don’t. Real players bootstrap.
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me too (for a new.space company)
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What’s this about a bad economy?
Large fund, Nimble…. investment oppourtunity thesis.
They are the 99%… of funds available
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.
I wonder if it’s a good time for entrpereneurs to raise money?
I’m totally starting the rumour the new fund is to buy Greece.
lol
Definitely should ask Andreessen Horowitz more about it when they come down for Rainmakers
awesome.
I would very much like to see you try
don’t believe everything you see in mainstream media, pal
cheers from Sparta, Greece
eindlich! crisis is over and we can start it all over again! btw, I need some hondos for my biz!
damn.. and i was worried if i get into YC this session :O
Wow! And they say the economy is bad.
how does the economy and a single fund raise have anything in common?
What’s their realized track record on the first two funds? Not unrealized, but actual cash on cash.
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.
Interesting, DM
That is a lot of $$$ in management fees. I see a new corporate jet in the firms future.
How do you invest in their fund?