Andreessen Horowitz, also known as a16z, has expanded its fifth growth fund to $8.5 billion as the venture firm increases investments in artificial intelligence, robotics, defence technology and other emerging sectors.
The firm announced an additional $1.75 billion for the fund, which launched in January with $6.75 billion. The growth fund supports later-stage startups focused on scaling products, expanding markets and growing operations.
a16z Expands AI Investment Focus
David George, a16z’s growth investment leader, said the fund has invested in more than 100 companies over seven years. The firm noted that AI companies are reaching growth stages faster and requiring larger amounts of capital.
The expanded fund will target enterprise and consumer AI, defence technology, robotics, infrastructure hardware and software, and healthcare technology.
The move follows a16z’s launch of its $1.1 billion Machine Age Fund, which focuses on AI hardware startups developing chips, memory, networking and storage technologies.
The new funds are part of a broader expansion strategy following a16z’s announcement of $15 billion in new funding commitments earlier this year. The firm previously reported managing about $90 billion in assets.
