Andreessen Horowitz (a16z), a venture capital firm, has revealed its plans to invest $30 million in gaming startups that focus on technology, such as AI, VR/AR, and Web3 games. Andrew Chen, a general partner at a16z, who oversees the firm’s Games One Fund, stated that they are targeting investments at the intersection of technology and gaming, including AI infrastructure, 3D tools, VR/AR, web3 games, and gamified consumer apps.
To carry out these investments, a16z will utilize its early-stage accelerator program called “SPEEDRUN.” Chen explained that the $30 million will be distributed over the next 45 days, with each participating startup receiving $750,000. The SPEEDRUN program runs for 12 weeks and provides participants with not only capital but also access to industry coaches, mentors, and a supportive community of ambitious founders.
Chen emphasized that a16z is open to startups at various stages of development, from those in the early ideation phase to those with established products and real revenue. However, competition for entry into the SPEEDRUN program is intense, with only 1% of applicants accepted in the last cohort. Nevertheless, Chen revealed that 80% of companies from the first cohort of SPEEDRUN secured funding from investors after Demo Day.
Interested startups must submit their applications by May 19, and the 12-week program will take place from July 29 to October 20, 2024, in Los Angeles, California.
Some successful graduates of a16z’s SPEEDRUN program in the Web3 gaming sector include Matchday, a soccer-themed game, and Promodium, which is based on nonfungible tokens (NFTs).
Andrew Chen also oversees a16z’s $600 million Game Fund One, launched in 2022, which includes investments in notable gaming companies like Roblox, Sandbox, and Sky Mavis, the creators of the popular blockchain game Axie Infinity.
In addition to its focus on gaming startups, Andreessen Horowitz has made investments in blockchain-based gaming companies through its cryptocurrency division. Some of these investments include Mythical Games, Yield Guild Games, Azra Games, CCP Games, NOD Games, and Voldex.
The Web3 gaming market is expected to experience significant growth, with a projected increase from $154 billion to $614 billion by 2030, according to a report by Fortune Business Insights in January. This represents a compounded annual growth rate of 21.8%.
Overall, a16z’s investments in the gaming industry reflect the growing importance of technology and innovation within the sector.