Andreessen Horowitz to invest $30M in tech-fueled gaming startups
Venture capital firm Andreessen Horowitz (a16z) has announced it will invest $30 million in technology-based gaming startups, including AI, VR/AR and Web3 games.
“We are investing in the intersection of TECH x GAMES, which means AI/infra, 3D tools, VR/AR, web3 games, gamified consumer apps and more games in one fund,” said Andrew Chen, general partner of 16z, who oversees 16z.
The $30 million investment will be made over the next 45 days through the company's first-stage accelerator “SPEEDRUN” program, Chen said at the April 1 Expo, which will give $750,000 to each startup that joins the program.
The program consists of a 12-week program where participants are supported by venture capital as well as industry coaches, mentors and a “community of great founders,” Chen said.
According to Chen, a16z is open to a variety of startups – from teams at the idea stage to teams with an established product and real revenue.
Although the competition to a16z's SPEEDRUN program is fierce, only 1% of applicants make it to the final team. However, according to Chen, 80% of the companies from SPEEDRUN's first batch received funding from investors following the demo day.
Also, a fun video from SR002 to give you all a taste of what a demo day is like: https://t.co/QgaWqIv7LR
— Andrew Chen (@andrewchen) April 1, 2024
Applications must be submitted by May 19, for a 12-week course between July 29 and October 20, 2024 in Los Angeles, California.
Web3 graduates from the 16z SPEEDRUN program include the soccer-themed Matchday and the invincible simulation-based Promodium, both Web3 games.
Related: ‘Tens of millions' to enter Web3 in gaming by 2024 – GameFi execs
Chen oversees the company's $600 million Gaming Fund One, which launches in 2022 and includes investments in Roblox, Sandbox and Sky Marvis – creators of the blockchain game Axi Infinity.
The Silicon Valley firm has invested in blockchain-based gaming startups through their cryptocurrency division, such as Mythical Games, Generation Guild Games, Azra Games, CCP Games, NOD Games, and Voldex.
The Web3 gaming market is projected to grow from $154 billion to $614 billion by 2030, according to a January report by Fortune Business Insights — a compound annual growth rate of 21.8%.
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