Venture-capital firm Andreessen Horowitz on Wednesday announced a second fund with $650 million to invest in tech startups at seed, venture and growth stages. Andreessen Horowitz has raised nearly $1 billion over the past 16 months, and the new fund will make investments ranging from $50,000 to $50 million.
Marc Andreessen, cofounder of Netscape Communications, teamed with Ben Horowitz, his Netscape colleague, to form Andreessen Horowitz in June 2009. The firm's first fund totaled $300 million.
"Our mission is to invest in the best entrepreneurs building the most important companies," Horowitz said. "As a matter of core philosophy, we invest in companies, not stages -- we're stage-agnostic. This fund will help us continue to support great entrepreneurs in whatever phase they're in as they build quality companies going after the biggest markets."
Tech Start-up Experience
Andreessen Horowitz's portfolio currently holds 28 investments, including Kno, Nicira, Proferi, Rockmelt and Zynga. The firm also led Foursquare's series B round and was among a group of investors that bought part of Skype. The firm focuses on investing in a range of start-ups in the technology sector, including cloud computing, web, mobile and consumer electronics.
Beyond the firm's unique multi-stage investment philosophy, one of its founding principles is to have general partners who are skilled in helping companies at all three stages of development -- seed, venture and growth.
The firm's general partners -- Andreessen, Horowitz and John O'Farrell -- have the entrepreneurial and operational expertise to guide founders through company life cycles, from establishing companies to running them at scale. The partners draw from their track records with companies such as Netscape, Loudcloud/Opsware and Silver Spring Networks.
Indeed, before officially launching their own VC firm, Andreessen and Horowitz were no strangers to investing in start-ups. They acted as angel investors for more than 45 companies, including Aliph (Jawbone), ExtraHop, LinkedIn and Twitter, before launching Andreessen Horowitz.
"We're extremely pleased with what we've accomplished in a little over a year," said Andreessen. "We've had access to more than 1,000 deals and are working with high-caliber entrepreneurs who are determined to build game-changing companies."
Capital Awaits Opportunity
Andreessen Horowitz's ability to raise another $650 million is proof that there is still money on the sidelines looking for opportunities. The money is flowing to those who are offering strong results, said Rob Enderle, principal analyst at the Enderle Group. Andreessen Horowitz is offering results, and therefore raising more funds.
"Andreessen Horowitz knows tech. Tech remains a growing segment, one that is probably one of the strongest exporters in the U.S. and is likely to get a certain amount of additional government assistance under the new mixed government we have as of this morning," Enderle said. "As long as the risk seems reasonable and if the firm is showing continued success in being able to pick and manage firms to success, then they are not going to have a problem getting funding."
Eric from evly.com:
Posted: 2010-12-16 @ 11:32am PT
Is the fund international or only investing in US startups?
Posted: 2010-11-03 @ 12:19pm PT
where do we apply?