Andreessen Horowitz targets metaverse games with new investment

Andreesen Horowitz is one of the top venture capital firms globally. The firm has been adamant about investing in the cryptocurrency sector, and it is still pouring more funds into strategic areas in this sector.

Andreessen Horowitz has now announced it will be releasing GAMES FUND ONE, which carries $600 million in funding. The funds will go towards investments in the gaming sector, a move that could contribute to the additional; growth of the space.

Andreessen Horowitz sets aside $600M for metaverse games

The gaming sector is becoming one of the largest spaces in the blockchain sector. Many venture capital firms have invested in blockchain gaming due to the expansive reach of these games and the fact that they are attracting many players globally who want to access play-to-earn and free-to-earn options.

Games have become an integral piece of society over the years. Games are innovations that allow people to socialize, play and work together in a virtual world setting. The $600M fund will invest in a wide range of areas, including gaming studios, games, customer experiences and infrastructure.

The crypto unit for Andreessen Horowitz, a16z, said that “Over the past decade, games have undergone a radical transformation, from simply being packaged entertainment to becoming online services that more closely resemble social networks and scale like consumer technology companies.”

The fund will not only include Andreessen Horowitz. The other parties that will also be part of this fund include the founder of Roblox, David Baszucki, the founder of Discord, Jason Citron, the co-founder of Riot Games, Marc Merrill, the co-founder of Blizzard, Mike Morhaime, the co-founders of Sky Mavis, Aleks Larsen and Jeffrey Zirlin, the co-founder of Twitch, Kevin Lin, the founder of Zynga, Mark Pincus and the founder of King, Riccardo Zacconi.

Growth of the gaming industry

Andreesen Horowitz’s crypto unit noted that the success of blockchain games had been witnessed over the past year. The growing popularity of blockchain games has made them attract a large following. Some of the games that have attracted a large following include Fortnite, League of Legends and Minecraft.

In 2021, the gaming industry witnessed massive growth, with a report from Naavik saying that the sector had attracted more than $300 billion. Andreessen Horowitz said that blockchain games were attracting a vast audience, and the revenues have recorded notable growth.

The statement added that “These ‘games-as-a-service’ have become rich, interactive social networks, with players making in-game friendships that are just as meaningful as those made in-person.”

As aforementioned, a16z has recorded massive growth, and they are expanding its presence in the crypto sector. The Andreessen Horowitz crypto division announced strategic partnerships with firms operating in the cryptocurrency space earlier in the month. Some of the secured partnerships include Coatue, Dapper Ventures, Digital Currency Group, Greenfield One and Liberty City Ventures.

Venture capital firms are competing for strategic spaces in the crypto sector, and with this announcement, more funds could start backing metaverse games. Projects such as The Sandbox, Axie Infinity and Gala Games have already witnessed notable growth.