Andreessen Horowitz (popularly known as a16z) has secured more than $15 billion across five funds, the largest raise in funds long and illustrious history. Including the money it has just raised, the firm now manages over $90Bn in assets worldwide, across its several funds, giving it nearly unparalleled dominance in the startup investing space.
AI, as one would expect, is a major focus. The firm has created a $1.7 billion AI infrastructure fund to back the platforms, tools, and systems that are powering the next generation of artificial intelligence. On top of that, a $1.7 billion applications fund will invest in AI-driven software companies that span everything from enterprise productivity tools to consumer apps. However, this particular move in the AI domain becomes even more notable, as earlier reports suggested that the firm is planning to raise around $20 billion for AI-focused investments.
Meanwhile, the largest portion of the latest fundraising is the $6.75 billion growth fund, which is aimed at later-stage companies that have already proven their market fit and are ready to scale rapidly. These are the startups that could become the next household names or go public in the coming years. And by focusing on growth-stage investments, a16z is doubling down on companies that need significant capital to expand globally and compete on a massive scale.
Andreessen Horowitz is also placing a strategic bet on American Dynamism, allocating $1.176 billion to technologies that intersect with national priorities, like defense, advanced manufacturing, energy, and critical supply chains. This fund highlights the increasing intersection of venture capital with geopolitical and economic strategy. The healthcare and biotechnology sector is also an important focus. A $700 million bio and health fund will support startups working on drug development, medical devices, digital health platforms, and life sciences tools.
This massive capital raise comes at a critical time when the broader venture capital environment is facing significant challenges. Overall VC fundraising in the US has slowed compared with previous peak years, with deal activity and valuations declining across sectors, especially in late-stage tech. Industry estimates show that in the first half of 2025, only about $26.6 billion was raised across 238 VC funds, putting the annualized rate near a decade low and marking around a 34% year-over-year decline compared with 2024 trends. As many firms tighten their budgets, several high-profile startups have delayed funding rounds, scaled back operations, and even carried out layoffs.