Silicon Valley-based venture capital firm Andreessen Horowitz, or a16z, plans to launch a new $600 million metaverse fund.
What Happened: In a recent blog post, Andreessen Horowitz announced the launch of the fund, which would support innovation in the gaming industry and help build the infrastructure of the metaverse.
“As games evolve into virtual worlds and online services, the demand for tools and services needed to build great games is skyrocketing. Of course, this infrastructure is important for games in its own right. Still, we also believe that the coming metaverse will be built by games companies, using games technologies,” Andreessen Horowitz said.
According to the company, the fund will be utilized to develop gaming studios, consumer applications that offer support games, and the metaverse framework.
Why It Matters: “Games are driving innovation across the entire consumer ecosystem, pioneering best-in-class mechanisms for user engagement, retention, and monetization, such as microtransactions, battle passes, and Web 3.0 tokens,” the blog post read.
“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,” the firm added.
In May, the company said it is looking to invest about $500 million to back Indian startups.
Earlier this year, the company announced plans to raise $3.5 billion for its crypto venture fund and $1 billion for another fund focused on seed investments in crypto startups.