Andreessen Horowitz

Andreessen Horowitz, also known as a16z, is a venture capital firm based in Menlo Park, California. It was founded in 2009 by Marc Andreessen and Ben Horowitz. The firm invests in both early-stage startups and established growth companies across sectors such as AI, bio and healthcare, consumer, crypto, enterprise, fintech, games, and infrastructure. As of May 2024, the firm manages $42 billion in assets and is one of the largest venture capital firms by assets under management.

The founders began investing together as "super angel" investors from 2006 to 2010, funding companies like Twitter. Their first venture fund launched with $300 million in 2009, followed by $650 million in 2010. By 2014, the firm was managing $4 billion. In 2022, it raised $9 billion for venture, growth-stage, and biotech funds. a16z operates with a large team, including many former entrepreneurs and industry professionals.

a16z’s investment criteria include strong founders, large market potential, unique or disruptive technology, proven traction, and company culture. The firm supports companies through capital, expertise, networks, and guidance across all stages of growth. 

It has backed over 800 companies, including Airbnb, Coinbase, Facebook, GitHub, Instacart, Lyft, Slack, Roblox, Pinterest, and Okta. Some investments have resulted in IPOs or acquisitions by large firms such as Microsoft, Facebook, Google, and Amazon.

The firm values long-term partnerships, truth, trust, and support for founders. Its internal culture focuses on integrity, teamwork, and performance. It takes public positions only on issues directly affecting company creation, such as crypto regulation. a16z restructured as a registered investment adviser in 2019 to allow more flexibility in investments like cryptocurrency. It also maintains a strong network of experts to support its portfolio companies and their growth.

Andreessen Horowitz, also known as a16z, was founded on 6 July 2009 by Marc Andreessen and Ben Horowitz in Menlo Park, California. Prior to its launch, the founders were already investing in early-stage technology companies. Between 2006 and 2010, they invested approximately $4 million in 45 startups, including Twitter. Their active presence in the venture ecosystem during that time led to their recognition as "super angel" investors.

The firm was launched with an initial capital of $300 million. In 2010, despite a broader slowdown in venture capital activity, it raised a second fund worth $650 million, bringing total assets under management to $1.2 billion in less than two years. By 2014, Andreessen Horowitz had grown its assets to $4 billion after closing its fourth fund at $1.5 billion. During this period, the firm expanded its leadership to include general partners such as Jeff Jordan, Peter Levine, Chris Dixon, Vijay Pande, Martin Casado, Andrew Chen, and Sriram Krishnan.

From the start, the firm invested in notable companies across consumer technology, enterprise software, fintech, healthcare, and crypto. It played a role in the growth of companies such as Airbnb, Coinbase, GitHub, Slack, Lyft, Pinterest, Roblox, Okta, and Skype. Several of these companies either went public or were acquired by large corporations such as Microsoft, Facebook, and Amazon.

In 2019, Andreessen Horowitz opened a San Francisco office and restructured as a registered investment adviser. This move allowed the firm greater flexibility to invest in riskier sectors, especially in cryptocurrency and blockchain. It also continued to expand its operational teams that support portfolio companies in areas such as engineering, HR, legal, marketing, and business development.

In 2022, the firm raised $9 billion for venture, growth-stage, and biotech-focused funds. It also announced a $4.5 billion fund for cryptocurrency investments and made a $350 million investment in Flow, a housing startup founded by Adam Neumann. That same year, it committed $400 million in equity to support Elon Musk’s acquisition of Twitter. However, by 2024, it was reported that the firm had experienced a $288 million paper loss on that investment.

Throughout 2023 and 2024, Andreessen Horowitz remained active in sectors such as artificial intelligence, Web3, gaming, fintech, and bio-health. It continued to lead and participate in funding rounds for startups in the US and internationally, with a particular interest in companies advancing decentralised technologies and infrastructure.

By 2025, Andreessen Horowitz manages $45 billion in committed capital. The firm continues to operate with a large team of domain experts and professionals with backgrounds in entrepreneurship, technology, law, operations, and finance. It follows a stage-agnostic approach, investing in seed, early-stage, and growth-stage companies. The firm is known for its active support of entrepreneurs, strong network of advisors, and long-term focus on building sustainable and scalable technology-driven businesses. It remains one of the most influential venture capital firms globally.

The company has rigorous investment criteria for selecting startups to invest in. Here are some of the key factors that Andreessen Horowitz considers when evaluating potential investments:

Founders: The firm looks for founders who have a deep understanding of their industry, a clear vision for their company, and the ability to execute that vision. The founders should also have strong leadership qualities and a track record of success.

Market opportunity: The firm evaluates the size and growth potential of the market that the startup is targeting. They look for markets that are large and growing, with the potential to be disrupted by innovative technology.

Technology: Andreessen Horowitz invests in startups that have developed innovative and disruptive technology that can create significant value for their customers. They look for companies that have a competitive advantage through proprietary technology, intellectual property, or other barriers to entry.

Traction: The firm looks for startups that have demonstrated some level of traction, whether that be user growth, revenue growth, or other key performance indicators. This demonstrates that the company has a product or service that resonates with customers and has the potential to scale.

Culture: Andreessen Horowitz places a strong emphasis on company culture and looks for startups with a strong and positive culture that aligns with their values.

Partnership: Andreessen Horowitz believes in building strong partnerships with its portfolio companies. The firm takes a hands-on approach to its investments, providing not just capital but also expertise, connections, and support to help these companies grow and succeed.

Entrepreneurship: The firm is deeply committed to entrepreneurship and believes in the power of startups to transform industries and create new opportunities. They encourage risk-taking and innovation, and they are always on the lookout for founders who share this mindset.

Diversity and inclusion: Andreessen Horowitz believes that diversity and inclusion are critical to building successful companies and creating positive change in the world. The firm has a strong commitment to diversity, both within its own team and in the companies that it invests in.

Long-term thinking: The firm takes a long-term approach to its investments, focusing on building enduring companies that can create value over the long term. They are patient and supportive investors, and they are willing to provide the resources and support that companies need to achieve their goals.

Integrity: Andreessen Horowitz places a high value on integrity and ethics. They believe in doing the right thing, even when it's difficult or unpopular, and they expect the same from the companies that they invest in.

According to Andreessen Horowitz, their mission is “We aim to connect entrepreneurs, investors, executives, engineers, academics, industry experts, and others in the technology ecosystem. We have built a network of experts including technical and executive talent; top media and marketing resources; Fortune 500/Global 2000 companies; as well as other technology decision-makers, influencers, and key opinion leaders. a16z uses this network as part of our commitment to helping our portfolio companies grow their business, so our operating teams provide entrepreneurs with access to expertise and insights across the entire spectrum of company building.” 

Its portfolio includes companies in a variety of sectors, including consumer technology, enterprise software, fintech, healthcare, and more. Here are a few examples of the types of companies that Andreessen Horowitz has invested in:

Airbnb:  Airbnb is an online platform that allows people to rent out their homes or rooms to travellers. It helps users book accommodations through mobile and web applications.

GitHub: GitHub is a development platform where users can host, review, and manage software projects. It offers tools for version control, collaboration, and open-source development.

Slack: Slack is a workplace communication tool that allows teams to message, share files, and collaborate. It integrates with various productivity apps to streamline work.

Coinbase: Coinbase is a cryptocurrency exchange that allows users to buy, sell, and store digital currencies. It supports Bitcoin, Ethereum, and other popular cryptocurrencies.

Robinhood: Robinhood is a trading platform that offers commission-free trading of stocks and cryptocurrencies. It aims to make financial markets accessible to a broader audience.

Facebook: Facebook is a social networking site used to connect with friends and communities online. It provides messaging, news sharing, and group interaction features.

Instagram: Instagram is a platform for sharing photos and videos, often with filters and captions. It is widely used for personal content and brand marketing.

Skype: Skype provides voice and video calling over the internet, along with messaging and file sharing. It is used for both personal and business communication.

Lyft: Lyft is a ride-sharing service that matches passengers with nearby drivers through its app. It focuses on simple interface design and community-based transport options.

Pinterest: Pinterest is a visual discovery tool used to find and save ideas like recipes, fashion, and travel plans. Users collect and organise ideas on personal boards.

Roblox: Roblox is a user-generated gaming platform where people can play and create games. It is especially popular among young users and developers.

Okta: Okta provides identity management services that secure user login for cloud and enterprise applications. It helps organisations manage access to digital services.

PagerDuty: PagerDuty is an incident response tool for IT teams to manage outages and operational issues. It helps companies act quickly during service disruptions.

Instacart: Instacart is an online grocery delivery platform that connects customers with personal shoppers. It partners with local stores to deliver products to users’ homes.

Oculus VR: Oculus creates virtual reality headsets and platforms used in gaming and simulation. It was acquired by Facebook and supports immersive experiences.

Nicira Networks: Nicira developed virtual networking technology that improved network flexibility and efficiency. It was acquired by VMware for integration into cloud infrastructure.

Ciitizen: Ciitizen allows patients to collect and manage their medical records digitally in one place. It was acquired by Invitae, a genetics company.

PatientPing: PatientPing offers real-time notifications to healthcare providers when a patient receives care elsewhere. It helps improve care coordination across facilities.

Wise: Wise enables fast, low-cost international money transfers with transparent exchange rates. It also offers multi-currency accounts for individuals and businesses.

Samsara: Samsara provides IoT hardware and software for fleet tracking and operational analytics. It helps businesses monitor equipment, vehicles, and safety compliance.