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0 CommentsOn May 18, venture capital firm Andreessen Horowitz (a16z) announced the launch of a $600 million fund focused on metaverse games. A16z is looking to expand its reach into the gaming industry, which generated more than $300 billion last year.
With the new fund, named “Games Fund One,” the team plans on investing in various themes and player communities within the gaming industry.
According to a16z, games will continue to play a pivotal role in how people socialize, play, and work in the future, and the fund will invest in game studios, game and customer experiences, and infrastructure.
“Over the past decade, games have undergone a radical transformation, from simply being packaged entertainment to becoming online services that more closely resemble social networks and scale like consumer technology companies,” a16z said in a statement.
Joining Andreessen Horowitz in the fund are David Baszucki, founder of Roblox; Jason Citron, founder of Discord; Marc Merrill, co-founder of Riot Games; Mike Morhaime, co-founder of Blizzard; Aleks Larsen and Jeffrey Zirlin, co-founders of Sky Mavis; Kevin Lin, co-founder of Twitch; Mark Pincus, founder of Zynga; and Riccardo Zacconi, founder of King.
A16z pointed to the success of games with massive social followings, such as Fortnite, League of Legends, and Minecraft. According to a report by research firm Naavik, the gaming industry raked in over $300 billion in 2021.
“These ‘games-as-a-service’ have become rich, interactive social networks, with players making in-game friendships that are just as meaningful as those made in-person,” a16z stated.
NFT-based games peaked in popularity last year, with a recent cooldown, according to data compiled by The Block Research.
Gaming startups have still managed to raise significant capital in recent months, many of which were led by a16z. Carry1st, an African gaming startup, raised $20 million earlier this year. At the end of last year, Mythical Games raised $150 million, led by a16z.
