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.
Uncrunched 
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?