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.