Andreessen Horowitz, which has made some very large bets on hot Internet companies, is setting out to raise a third fund totaling $900 million, peHUB has confirmed. The news was first reported by investor/blogger Michael Arrington.
The new fund would bring AH’s total capital under management to about $2.1 billion, a stunning figure since the firm launched less than two and a half years ago.
A limited partner in AH’s prior funds says although the new fund will be enormous, it won’t have a specific focus on growth stage deals. The firm will continue to be a “stage agnostic” investor, meaning it will invest from early stage to growth stage, said the LP, who asked not to be named.
The size of the fund has more to do with the lengthening amount of time required by VC firms to support their portfolio companies, the LP noted.
LP reception to the new fund has been “very good” and AH should have no trouble meeting its target, the LP said.
PeHUB sought comment from the firm, but has not heard back. Speaking last Thursday at Venture Alpha, a conference hosted by Thomson Reuters (publisher of PeHUB) in San Francisco, General Partner John O’Farrell sought to distance his firm from the $1 billion venture fund club, observing that it has about that under management but not in a single pool.
O’Farrell added that raising successively larger funds has helped the multi-stage firm address “unique opportunites,” many of which stem from the explosion in the number of Internet users, from 50 million 10 to 12 years ago, to 2 billion today, he said. “There are much bigger market opportunities than were previously addressable.”
We will update this story if the firm provides fresh comments.
Andreessen Horowitz has said it presently has about $1.2 billion under management. The firm launched in July 2009 with a debut fund of $300 million. It followed up with a $650 million second fund in November 2010, and a $200 million co-investment fund in April of this year.
O’Farrell wrote about the co-investment fund and AH’s investment strategy here.