Renowned venture capital firm Andreessen Horowitz (a16z) has declared its intention to inject a substantial $30 million into burgeoning technology-centric gaming startups.
In a significant move within the tech investment landscape, renowned venture capital firm Andreessen Horowitz (a16z) has declared its intention to inject a substantial $30 million into burgeoning technology-centric gaming startups.
This investment in gaming startups will encompass a diverse array of gaming ventures, spanning Artificial Intelligence (AI), Virtual Reality (VR) and Augmented Reality (AR), and Web3 games.
Andrew Chen, a general partner at a16z responsible for overseeing the firm’s Games One Fund, elucidated on the investment strategy, stating, “We are investing at the intersection of TECH x GAMES, which means AI/infra, 3D tools, VR/AR, web3 games, gamified consumer apps, and much more.”
The allocation of the $30 million corpus is slated to transpire over the course of the ensuing 45 days, facilitated through the firm’s early-stage accelerator program christened “SPEEDRUN.” Chen disclosed in an April 1 X post that each startup entering the program will receive a substantial injection of $750,000.
The SPEEDRUN program, a 12-week intensive initiative, is designed to provide comprehensive support to participating startups, encompassing not only financial backing but also access to industry stalwarts serving as coaches and mentors, alongside fostering a robust community of enterprising founders.
Chen emphasized the inclusive ethos of a16z, indicating receptivity to a spectrum of startups ranging from nascent teams conceptualizing ideas to entities boasting a tangible product with demonstrable revenue streams.
However, securing admission into a16z’s SPEEDRUN program is an arduous endeavor, with a mere 1% of applicants securing a spot in the last cohort. Despite the rigorous selection process, Chen highlighted the program’s efficacy, with an impressive 80% of companies from the inaugural cohort securing subsequent funding from investors post the Demo Day.
Applications for the upcoming cohort must be submitted by May 19, with the 12-week program scheduled to unfold between July 29 and October 20, 2024, in the bustling metropolis of Los Angeles, California.
Noteworthy graduates from a16z’s SPEEDRUN program include Matchday, a soccer-themed Web3 game, and Promodium, a nonfungible token-based gaming venture.
Andrew Chen also oversees a16z’s mammoth $600 million Game Fund One, inaugurated in 2022, which boasts investments in industry behemoths such as Roblox, Sandbox, and Sky Mavis, the trailblazers behind the blockchain sensation Axie Infinity.
In addition to its conventional gaming portfolio, the Silicon Valley stalwart has fortified its foothold in the burgeoning realm of blockchain-based gaming through strategic investments via its cryptocurrency division. Notable beneficiaries include Mythical Games, Yield Guild Games, Azra Games, CCP Games, NOD Games, and Voldex.
The outlook for Web3 gaming appears promising, with projections from a January report by Fortune Business Insights forecasting a meteoric rise in the market size from $154 billion to $614 billion by 2030, underpinned by a robust compounded annual growth rate of 21.8%.