American venture capital firm Andreessen Horowitz (a16z) has announced a new $600 million gaming fund dubbed GAMES FUND ONE with allocations to Web3 startups.
a16z Launches $600M Gaming Fund
In an official announcement last week, the capital firm noted that it is committed to investing in the future and the new fund is a step towards achieving that goal because the gaming industry has entered into a new era.
“GAMES FUND ONE is founded on the belief that games will play a pivotal role in defining how we socialize, play, and work over the next century. 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.
The firm stated that the $600 million fund, which is dedicated to building the future of gaming, will focus on game studios, gamers, and gaming infrastructure, which the company believes will become key building blocks of the Metaverse.
The venture capital firm is calling on gaming startups and developers with promising projects to apply for funding. According to Jonathan Lai, general partner at a16z, those who receive funding from the company will also receive mentorship and active support from experts in the field for the next ten years.
a16z Invests in Web3
Andreessen Horowitz believes in the potential of Web3 and has always been supportive of blockchain gaming and Web3 projects. Last week, the capital firm took part in a $725M funding round conducted by Web3 blockchain startup Flow.
In March, a16z led a $450 million funding round for Yuga Labs, the owner of Bored Ape Yacht Club (BAYC) NFT collection. The investment round helped the company reach a market valuation of $4 billion, Coinfomania reported.
Meanwhile, a16z found in a recent survey that Web3 content creators receive more payouts compared to their Web2 counterparts. According to the firm, Web3 platforms like OpenSea paid out a whopping $174,000 per creator while Web2 giants like Meta, YouTube, and Spotify paid $0.10, $2.47, and $636, respectively.
