Andreessen Horowitz , the firm founded in 2009 by Netscape co-founder Marc Andreessen and Opsware CEO Ben Horowitz, has closed its fifth flagship venture capital fund on $1.5 billion.
Andreessen Horowitz Fund V is a much bigger fund than similar vehicles currently in the market, the average size of a venture capital fund in 2015 was $119.8 million, according to the National Venture Capital Association. In May, Phoenix Venture Partners raised $58.5 million for their second fund Phoenix Venture Partners Fund II, PEI reported .
The fund close was announced last week in a blog post from the firm's website. Scott Kupor, a managing partner at Andreessen Horowitz, said that since the firm's founding seven years ago, they have been investing under the broad thesis of “software is eating the world”, the theme under which Fund V will continue to invest in seed, early-stage, and mid-stage-growth tech companies.
Andreessen Horowitz Fund V is the same size as the firm's previous fund and includes a primary pool for both early and late-stage deals, in addition to an overflow pool for portfolio companies that require significantly more capital. Of the total, $1 billion will be distributed for the main fund and $500 million for the parallel fund that will only collect management fees once capital is committed, and 65 percent to 75 percent will be dedicated to early-stage deals.
Commitments for the fund came from existing limited partners.
The firm's previous fund, Andreessen Horowitz Fund IV, held a close on target at $1.5 billion in 2014. The Leona M. and Harry B. Helmsley Charitable Trust was a limited partner.
Fund III held a close on $900 million in 2012. Limited partners included the Andrew W. Mellon Foundation, Rockefeller Foundation, and Pantheon Ventures, among others.
Kupor said in the post: “Simply put, software is disrupting a broad cross-section of traditional industries – for example, Airbnb in hospitality, Comma.ai in cars, Everlaw in legal, Honor in senior home care, Instacart in grocery, Lyft in ride-sharing, OpenGov in government data, Soylent in food; Branch, Coinbase, and Transferwise in financial services.”
The firm also counts Facebook and Buzzfeed among its portfolio companies.
Kupor added: “We are now also seeing more non-traditional 'tech' companies acquire, build, hire, or otherwise embrace technology. The market opportunity for successful new technology businesses is bigger than ever.”
The venture capital firm has $4 billion of assets under management overseen by eight partners.