Venture capital firm Andreessen Horowitz (a16z) has announced the launch of a new gaming fund called GAMES FUND ONE, which will deploy $600 million across game studios, gaming-related consumer apps, and infrastructure.
In a blog post detailing the new fund, a16z’s general partners Andrew Chen, Jonathan Lai, and James Gwertzman wrote, “Having been investors in this space for more than a decade, it’s clear to us the industry has entered a new era, and there is no better time than now to build a fund focused on supporting the next generation of games builders.”
The firm believes that the gaming industry, currently pegged at $300 billion, will radically grow with the introduction of the metaverse. The culture practices inculcated in the best games and gaming companies today drive best in class innovation, name-checking titles such as Fortnite, League of Legends and Minecraft, the post read.
“Games are also driving innovation across the entire consumer ecosystem, pioneering best-in-class mechanisms for user engagement, retention, and monetisation, such as microtransactions, battle passes, and web3 tokens,” it added.
Notable industry experts and investors that are participating in this fund include Discord founder Jason Citron, Riot Games co-founder Marc Merrill and Blizzard co-founder, Mike Morhaime.