Venture capital titan Andreessen Horowitz (a16z) has unveiled plans to allocate $30 million toward innovative gaming startups with a strong focus on technology, spanning AI, VR/AR, and Web3 gaming.
Andrew Chen, a general partner at a16z who oversees the firm’s Games One Fund, declared the firm’s investment initiative at the crossroads of technology and gaming, encompassing AI infrastructure, 3D tools, VR/AR, Web3 games, gamified consumer apps, and beyond.
The $30 million capital infusion is slated for deployment within the next 45 days through the firm’s early-stage accelerator program dubbed “SPEEDRUN.” Each participating startup will receive $750,000 upon joining the program, which encompasses a rigorous 12-week curriculum supplemented by financial backing and guidance from industry veterans and mentors.
Chen emphasised the program’s inclusivity, welcoming startups at various stages of development, from nascent ideas to established products and revenue streams. However, admission to the SPEEDRUN program is highly selective, with a mere 1% of applicants to get to the last cohort. Nonetheless, Chen highlighted the program’s success, with 80% of companies from its inaugural cohort securing investment following Demo Day.
follow @speedrun for more details via X as well!
— andrew chen (@andrewchen) April 1, 2024
Interested startups must submit their applications by May 19, with the immersive 12-week course scheduled to run from July 29 to October 20, 2024, in Los Angeles, California.
Among the successful Web3 graduates from a16z’s SPEEDRUN program are Matchday, a soccer-themed gaming platform, and Promodium, leveraging non-fungible tokens (NFTs) within its gaming ecosystem.
Chen spearheads the firm’s $600 million Game Fund One, launched in 2022, boasting investments in gaming behemoths like Roblox, Sandbox, and Sky Mavis, the developers behind the blockchain sensation Axie Infinity.
In addition to traditional gaming ventures, Andreessen Horowitz has bolstered its presence in the blockchain gaming sphere through investments via its cryptocurrency division, backing startups such as Mythical Games, Yield Guild Games, Azra Games, CCP Games, NOD games, and Voldex.
The Web3 gaming sector is forecasted to witness substantial growth, with projections indicating an ascent from $154 billion to $614 billion by 2030, as per a January report by Fortune Business Insights, marking a robust compounded annual growth rate of 21.8%.