Andreessen Horowitz has closed its fifth flagship fund on $1.5 billion—the same amount the firm raised for its Fund IV a little over two years ago. The new vehicle will be used to continue supporting a16z’s famous thesis that “software is eating the world,” backing seed, early-stage and midstage-growth tech companies.
With this announcement, a16z adds its name to the illustrious list of firms that have secured north of $1 billion in commitments for new funds this year. Propelled by large raises from VCs such as Accel, Founders Fund and Lightspeed Venture Partners, 1Q saw a record amount of VC fundraising, with $16.35 billion secured by firms worldwide. And although one might think that such a quarter might be followed by a lull, this doesn’t appear to be the case. Even discounting the new a16z vehicle, 2Q was already on pace to exceed 1Q in terms of total VC funding raised.