Andreessen Horowitz (a16z), a venture capital firm, has made a significant announcement regarding its investment plans. The firm has allocated $30 million to invest in gaming startups that focus on technology, including AI, VR/AR, and Web3 games.
Andrew Chen, a general partner at a16z and overseer of the Games One Fund, stated, “We are investing at the intersection of TECH x GAMES, which means AI/infra, 3D tools, VR/AR, web3 games, gamified consumer apps, and much more.”
The $30 million will be distributed over the next 45 days through a16z’s early-stage accelerator program called “SPEEDRUN.” Each startup that joins the program will receive $750,000 in funding. Chen shared this information in an X post on April 1.
The SPEEDRUN program consists of a 12-week course. Participants will receive financial support, as well as guidance from industry coaches, mentors, and a community of ambitious founders.
Chen emphasized that a16z is open to a wide range of startups, from those at the ideas phase to those with established products and real revenue. However, competition for entry into the SPEEDRUN program is fierce, with only 1% of applicants accepted into the last cohort. Nevertheless, Chen revealed that 80% of companies from the first SPEEDRUN cohort secured funding from investors after Demo Day.
To apply for the program, startups must submit their applications by May 19. The 12-week course will take place in Los Angeles, California, from July 29 to October 20, 2024.
Some notable graduates from a16z’s SPEEDRUN program in the Web3 gaming sector include Matchday, a soccer-themed game, and Promodium, a nonfungible token-based game.
Andrew Chen is also responsible for overseeing a16z’s $600 million Game Fund One, which launched in 2022. This fund includes investments in prominent gaming companies like Roblox, Sandbox, and Sky Mavis, the creators of the blockchain game Axie Infinity.
In addition to traditional gaming startups, a16z has also invested in blockchain-based gaming startups through its cryptocurrency division. Some of these investments include Mythical Games, Yield Guild Games, Azra Games, CCP Games, NOD games, and Voldex.
According to a January report by Fortune Business Insights, the Web3 gaming market is expected to grow from $154 billion to $614 billion by 2030, with a compounded annual growth rate of 21.8%.
The gaming industry is witnessing significant growth in the Web3 space, and a16z’s investments reflect the potential and importance of this emerging sector.
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