Andreessen Horowitz said Tuesday that it raised $7.2 billion across five different funds, a sign of optimism in the tech startup world, which has seen

Andreessen Horowitz raises $7.2 billion, a sign that tech startup market may be bouncing back

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2024-04-16 18:00:06

Andreessen Horowitz said Tuesday that it raised $7.2 billion across five different funds, a sign of optimism in the tech startup world, which has seen a dearth of significant exits over the past two years.

"This marks an important milestone for us," Ben Horowitz, who co-founded the firm with Marc Andreessen in 2009, wrote in a blog post.

The biggest chunk of new funding is in Andreessen Horowitz's growth fund, which reeled in $3.75 billion. That money gets invested in later-stage companies that are viewed as closer to going public, or capital-intensive businesses that require big checks.

Horowitz said in the post that $1.25 billion will be dedicated to infrastructure, which includes artificial intelligence investments, while $1 billion will go to app investments, $600 million to games and another $600 million to what the firm calls American Dynamism, or "founders and companies that support the national interest." That includes aerospace, defense, education and housing.

The firm had initially aimed to raise $6.9 billion from investors for a new set of funds, including two with an AI focus, Bloomberg previously reported. AI investing has been red hot in Silicon Valley and beyond, while the broader market has been in a downturn.