Venture capital firm Andreessen Horowitz (a16z) has announced plans to invest $30 million in tech-powered gaming startups. This investment will focus on startups working with AI, VR/AR and Web3 games.
Accelerating the gaming industry
With the aim of supporting up to 40 companies, a16z’s early-stage accelerator program, known as SPEED RUN, will allocate $750,000 to each selected startup. However, the selection process for this program is highly competitive with only approximately 1% of applicants being admitted. This speaks to the high standards and rigorous evaluation process that a16z follows when selecting the most promising startups to invest in.
a16z’s investment will cover a wide range of technological applications within the gaming industry. By AI infrastructure to 3D tools, virtual and augmented reality to Web3 games and gamified consumer applications, the company aims to support startups that are pushing the boundaries of what is possible in the gaming world.
The $30 million investment will be distributed over the next 45 days through SPEEDRUN, a 12-week acceleration program. This program not only provides capital to selected startups, but also coaching, mentoring and access to a community of ambitious founders. This comprehensive support system is intended to help these startups grow and succeed in the highly competitive gaming market.
Source: Depositphotos
Investing in all phases
One of the unique aspects of a16z’s investment approach is that it focuses on startups at different stages of development. From conceptual ideas to ideas with established products and real revenues, the company aims to support startups at every step of their journey. This approach makes it possible a16z to identify and invest in the most promising ideas, regardless of their current stage.
a16z’s Game Fund One, which manages the company’s $600 million fund, has already seen success with its investments in notable companies like Roblox, Sandbox and Sky Mavis, the makers of Axie Infinity. In fact, SPEEDRUN’s first cohort had an 80% success rate, with the majority of companies securing additional funding after Demo Day.
In addition to its Game Fund One, a16z has also made significant investments in blockchain gaming startups through its cryptocurrency division. Companies such as Mythical Games, Yield Guild Games and Azra games have all received funding from a16z’s cryptocurrency division. This further underlines the company’s commitment to supporting innovation within the gaming industry through various avenues.
The future of gaming
a16z’s $30 million investment in technology-driven gaming startups is a clear indication of the company’s belief in the potential for continued growth and innovation within the industry. With the advancements in technology such as AI, VR/AR and Web3 games, we can expect even more exciting developments in the gaming world. And with the support of a16z, these startups will receive the necessary resources and guidance to bring their ideas to life and shape the future of gaming.
Featured image: Depositphotos