A16z Launches $600 Million Game, Funds Dedicated to Web3 and Metaverse


Andreessen Horowitz (A16z) launches a new fund to invest exclusively in the gaming and metaverse industries. The new $600 million fund will consist of a dedicated cash pool and a new internal structure targeting acquisitions within the gaming sector.

Seeking to shape the future of the gaming industry, the fund seeks to support many companies and initiatives in a variety of areas, including game studios, the intersection of games and consumers, and infrastructure.

Games Fund One is the name of the fund, and the fund is invested in three main areas: game studios, consumer applications that promote player communities such as Discord, and game infrastructure providers.

Citi estimates that the metaverse economy's overall market value will hit $13 billion by 2030 (RaillyNews).

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A16z Enters $300 Billion Video Game Market

Games Fund One is the company’s first dedicated fund for the games industry. The new funding will enable Andreessen Horowitz to expand its presence in the more than $300 billion global video game business.

A16z said, “In the long term, we believe that game infrastructure and technology will become essential components of the metaverse.

A16z said, “As games expand into virtual worlds and online services, the demand for the tools and services needed to create great games is surging.

The fund’s backers include a variety of gaming industry experts, including co-founders of King, Roblox, Discord, Twitch, Blizzard, Riot Games and Zynga.

The founding of Game Vertical comes as another bet, Facebook (now Meta), is bragging about the game’s metaverse prospects.

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Game giants improve the metaverse.

Gaming giants donate huge sums to Metaverse efforts. The developers of the popular Fortnite game Epic Games raised $2 billion from Sony and LEGO last month to create the metaverse.

The A16z team highlighted the billions of dollars in revenue generated by games like Minecraft, citing open-world games as examples of titles that have maintained long-lasting and active communities that function like social networks.

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Horowitz bets on upcoming technologies like web 3, quick games, and VR/AR. All of this has reinforced the conviction that gaming requires a professional focus, not only in terms of investment capital, but also in terms of operational expertise that is as unique and innovative as the gaming business itself.

Several parties are already investing heavily in the metaverse concept, and Citi estimates that the overall market for the metaverse economy will reach $13 billion by 2030, attracting more than 5 billion individuals.

Featured image from CNBC, chart from TradingView.com

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