a16z is planning to invest in Web3 gaming studios, applications, and infrastructure.
On May 18, Andreessen Horowitz (a16z), an American-based private venture capital firm, announced that it would initiate a $600M inaugural fund called GAMES FUND ONE. With this foundation, the company seeks to support Web3-based gaming startups, while providing a better future for the gaming industry, the ecosystem of the gaming community, and the infrastructure suppliers.
The venture capital firm implied that the most popular games as of now, including Minecraft, League of Legends, and Fortnite, have long-term player communities that produce more than a billion dollars in annual revenue. The company believes that “games infrastructure and technologies will be key building blocks of the Metaverse, an opportunity that dwarfs the current $300 billion game industry itself.”
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Andreessen Horowitz stated that gaming has become one of the primary ways people spend their time, thus most creative consumer firms must be developed around the players’ communities. “The rapid growth in the number of gamers worldwide has created a thriving ecosystem of consumer apps to support them,” the a16z team added.
The company also expanded on its vision and the importance of creating such a dedicated games fund:
“With GAMES FUND ONE, we will continue to add more functions and develop deeper networks that are tailored to the games ecosystem so we can help our portfolio companies with everything from building digital communities, to managing their virtual economies, to IP licensing best practices, to helping build their development teams.”
Yesterday, the San Francisco-based company Metatheory successfully collected $24 million in Series A fundraising to produce high-quality games while implementing non-fungible tokens (NFTs).
Andreessen Horowitz (a16z) is a venture capital firm located in California that backs entrepreneurs that build the future through technology. a16z has $19.2B in assets under management across multiple funds, including the $3.1 billion Cryptocurrency funds and the $1.4B billion Bio funds.