a16z Investments Through the Years

a16z has been investing in startups since 2009, with a focus on supporting innovative companies in the technology industry.

Their first fund, a16z seed, was launched in 2012 with $225 million in commitments.

From 2012 to 2015, the firm invested in companies like Uber, Airbnb, and Slack, which have since become household names.

a16z has a diverse portfolio of investments, with companies in sectors like healthcare, education, and fintech.

You might enjoy: Series B Investment

a16z has made some incredible investments over the years, and one notable example is Deel, a remote hiring startup that received its first investment from a16z in 2020.

The investment was a significant $14 million, which seems like a small price to pay considering Deel's current valuation of $12 billion.

Deel's valuation has soared since the pandemic began, and a16z's early investment likely played a role in its success.

This is just one example of a16z's savvy investments, and it's clear that they have a knack for spotting startups with huge potential.

Related reading: Post-money Valuation

The a16z investments have yielded some incredible returns over the years. One notable example is their investment in Airbnb, which returned over 100 times their initial investment.

Their investment in Instacart has also been a huge success, with the company's valuation reaching over $14 billion.

Andreessen Horowitz's investment in Lyft has also paid off, with the ride-sharing company going public in 2019.

Their investment in Stripe has been another winner, with the payment processing company's valuation reaching over $35 billion.

The a16z team's ability to identify and invest in high-growth companies has been a key factor in their success.

Andreessen Horowitz, or a16z, has been making significant investments since 2012. The firm invested $100 million in GitHub in 2012, which netted over $1 billion when GitHub was acquired by Microsoft for $7.5 billion.

In 2016, a16z led an $8.1 million Series A round in Everlaw, a legal technology company. The firm also invested $2 million in Cardiogram, a digital health company, and Apeel Sciences, a food science business.

Additional reading: Invested Part

In 2021, a16z led a $100 million Series B for Clubhouse, reportedly valuing it at $1 billion. The firm also led a $220 million Series D for mobile banking and fintech company Current, and a $100 million Series A for the NFT marketplace OpenSea, reportedly valuing it at $1.5 billion.

Fivetran has received significant funding from a16z, with the venture capital firm leading two rounds totaling $600 million.

The first a16z round for Fivetran was in 2019, and it's been a key player in the company's growth since then.

Fivetran's current value is $5.6 billion, a testament to the impact of a16z's investment.

A16z has clearly seen the potential in Fivetran's data-integration startup, and it's paid off in a big way.

GitHub was a game-changer for developers.

It started with a $100 million Series A round in 2012, funded entirely by A16z, which valued the company at $750 million.

Microsoft acquired GitHub six years later, a huge exit for the company.

The exit value was a staggering $7.5 billion.

Take a look at this: Company Invest

In 2010, Andreessen Horowitz invested $10 million in cloud company Okta while leading its Series A Round.

This marked the beginning of a significant year for the venture firm, which would go on to make several high-profile investments.

Andreessen Horowitz invested $80 million in Twitter in 2011, becoming the first venture firm to hold stock in all four of the highest-valued, privately held social media companies at the time: Facebook, Groupon, Twitter, and Zynga.

This achievement highlights the firm's keen eye for emerging trends and its ability to identify companies poised for rapid growth.

Here's an interesting read: Andreessen Horowitz Investments

In 2012, Andreessen Horowitz invested in 156 companies, a significant increase from previous years. The firm continued its successful streak of investing in top-notch startups.

Andreessen Horowitz invested $100 million in GitHub, which would later be acquired by Microsoft for $7.5 billion. This investment netted over $1 billion for the fund.

The firm also invested in Y Combinator's Start Fund, which supported 66 start-ups. Andreessen Horowitz's investment in GitHub was a notable highlight of the year, showcasing the firm's ability to back high-growth companies.

In 2013, Andreessen Horowitz invested in a range of innovative startups, including Clinkle, Coinbase, and Databricks. These investments demonstrate the firm's commitment to supporting cutting-edge technologies.

If this caught your attention, see: Pledge Fund

In 2014, the firm led a $57 million Series B round in the A/B testing startup Optimizely.

That same year, the company invested in several other companies, including Tanium for $90 million and BuzzFeed.

The firm also invested $2.8 million in Distelli in 2015.

In 2015, Andreessen Horowitz invested a total of $40 million in Stack Exchange and $80 million in cloud-based CAD software company Onshape.

The firm invested $2.8 million in Distelli in 2015, which shows their focus on supporting innovative startups.

In 2015, they invested in several more companies, including Honor, Inc. and OpenBazaar, a blockchain startup.

Andreessen Horowitz invested in the blogging platform Medium in 2015, which helped launch its growth.

The firm's investments in 2015, including Samsara and Improbable, demonstrate their interest in cutting-edge technologies.

In 2015, the firm invested $80 million in Onshape, a cloud-based CAD software company, which highlights their focus on supporting innovative industries.

In 2016, the firm led an $8.1 million Series A round in Everlaw, a legal technology company.

The firm also invested $2 million in Cardiogram, a digital health company, and $2 million in Apeel Sciences, a food science business.

In 2017, the firm invested in several companies, including Sigma, Health IQ, Asimov, and Cadre.

The firm raised $300 million for a dedicated cryptocurrency fund in 2018.

That year, it also invested in a range of companies, including Imply, Smartcar, PeerStreet, CryptoKitties, Dfinity, Earnin, Pindrop, Tenfold, and Very Good Security.

In September 2018, Andreessen Horowitz participated in a Series A funding round in Applied Intuition, a software company specializing in products for autonomous vehicles (AVs), and Marc Andreessen joined the Applied Intuition board.

The firm provided $15.3 million in Series A funding to Substack in 2019, some of which went to bringing high-profile writers into that network.

In June 2019, the firm invested in a $9.2 million Series A round in AnyRoad, an experiential marketing platform, and David Ulevitch from Andreessen Horowitz joined the AnyRoad board.

You might like: Series a round

In 2021, a16z made some significant investments that caught our attention.

The firm led a $100 million Series B for Clubhouse, an audio-chat social networking app, reportedly valuing it at $1 billion in January 2021.

A16z also led a $220 million Series D for Current, a mobile banking and fintech company, in April 2021.

In July 2021, the firm led a $100 million Series A for OpenSea, an NFT marketplace, reportedly valuing it at $1.5 billion.

A16z led an $18 million Series A fundraise in Pearl Health, a healthcare technology company, in September 2021.

The firm led the round to Raise $150M Series B at $3B Valuation in Vietnamese studio Sky Mavis, the developer of crypto-based online game Axie Infinity, in October 2021.

A16z's crypto fund invested $100 million in crowdfunding platform Kickstarter in December 2021, with the expectation that it would pivot to blockchain technology.

This decision to pivot backfired, alienating many of Kickstarter's users and damaging its reputation.

Broaden your view: A16z Crypto Portfolio

In 2022, a16z led the round to raise $450 million at a $4B valuation in Yuga Labs, known for Bored Apes.

The US Securities and Exchange Commission investigated Yuga Labs in October 2022, due to concerns that sales of their digital assets violated US investment laws.

a16z co-led a $90 million round in Los Angeles-based machine-parts start-up Hadrian Automation in March 2022, alongside Lux Capital.

In March 2022, the firm led a $27 million Series A for Rutter, a universal API for commerce data.

a16z announced the launch of its largest fund to date at $4.5 billion in May 2022, with a focus on cryptocurrency and blockchain technologies.

The firm allocated $1.5 billion for seed investments and $3 billion for venture investments in its largest fund.

The firm invested $350 million in Flow, a housing market start-up by WeWork founder Adam Neumann, in August 2022.

The decision to invest in Flow was met with criticism due to Neumann's previous business issues at WeWork.

a16z committed $400 million in equity investment towards the acquisition of Twitter by Elon Musk in October 2022.

By September 2024, the firm had lost $288 million on its Twitter investment.

Expand your knowledge: A16z Gaming Fund

Andreessen Horowitz partners work on behalf of all its portfolio companies, an approach modeled after the Hollywood talent agency, Creative Artists Agency. This means that they have a vested interest in the success of each and every company in their portfolio.

The firm has a database of designers, coders, and executives that they use to help fill positions at their start-ups. This database is a valuable resource for the companies in their portfolio.

In 2011, former U.S. Treasury Secretary Larry Summers became a special advisor to Andreessen Horowitz. His expertise has been a valuable asset to the firm.

Adrian Fenty, former Washington D.C. mayor, was appointed Andreessen Horowitz's second special advisor in 2012. He advises the firm's portfolio companies on working with local, state, and federal governments.

The firm has also established a presence in London, United Kingdom, with a cryptocurrency-investment entity. This move is a strategic step for the firm as they look to expand their reach and expertise.

In 2022, a16z announced GAMES FUND ONE, a fund dedicated to building the future of the games industry. This fund is a significant development for the firm and the gaming industry as a whole.

At a16z, the investment philosophy is centered around building long-term relationships with entrepreneurs, executives, and corporate partners. They take a long view of relationships, treating them as investments in people rather than just transactions.

The firm's approach is to be a friend for life, never compromising long-term trust for short-term gains. This means being present in good times and bad, even if it means being a tough friend at times.

a16z invests in innovators, taking an asymmetric bet on the magnitude of the strength of the idea and the team, rather than focusing on their weaknesses. They never ridicule or dismiss new ideas they don't yet understand, assuming it's their own slow understanding that's the issue, not the entrepreneur's.

We take a long view of relationships because we're in the relationship business. We build relationships with people we want to do business with for a very long time.

Related reading: The Business Advantages of Investing in Fabric Structures

We treat our partners as long-term friends, not just transactional acquaintances. We take an interest in their career and help them find the right job for them.

We don't try to jam them into a specific company, but rather seek to help them innovate in a way that meets their business needs. This approach helps us build strong, lasting relationships.

We're there for our partners in good times and in bad, and we can be tough friends when needed. However, we expect our partners to treat us with the same kindness and respect.

If our partners don't meet our expectations, we're willing to walk away from the relationship. We never compromise long-term trust for the sake of a short-term win.

We bet on the future, always looking to the potential of a deal succeeding over the ways it can fail. This means we focus on the magnitude of the strength of an idea and the team behind it, rather than their weaknesses.

We don't criticize deals that aren't working, because we know the bet was asymmetric when we made it and the job was always going to be challenging.

In fact, we assume that we're the ones who are slow to understand something new, not the entrepreneur. This helps us stay open to new ideas, no matter how crazy they might seem at the time.

Breakthrough ideas are often difficult to recognize, and we've seen this firsthand with investments in virtual reality, cryptocurrency, and even air mattresses in apartments.

Expand your knowledge: A16z New Fund

Andreessen Horowitz's investment in Coinbase is a prime example of the firm's crypto philosophy in action. Chris Dixon, a former founder with a master’s degree in philosophy, joined the firm in 2012 and led a $25 million Series B funding round for Coinbase a year later.

This investment valued Coinbase at $125 million in 2013 and would go on to become the firm's highest-returning investment. Coinbase went public via direct listing in April 2021, returning $4 billion in shares to investors.

The firm's connections played a crucial role in securing this investment, with a surprise visit from rapper Nas helping to seal the deal. This highlights the importance of relationships and networking in the investment world.

The massive windfall from the Coinbase investment has earned the firm a reservoir of investor goodwill, which will likely be beneficial in future investment opportunities.

Investing can be a daunting task, but understanding the challenges involved can help you make more informed decisions.

Timing the market is a significant challenge in investing, as it's difficult to predict when to buy or sell. This is evident in the case of a16z investments, which often face criticism for their timing, as mentioned in the article.

A lack of diversification can lead to significant losses, especially in a downturn. a16z investments has a portfolio that spans various sectors, which helps mitigate this risk.

Investing in emerging markets can be particularly challenging due to factors like currency fluctuations and regulatory risks. a16z investments has successfully navigated these risks in their investments in Africa.

It's essential to have a long-term perspective when investing, as the market can be volatile in the short term. a16z investments has a history of holding onto their investments for extended periods.

A significant challenge in investing is staying informed about market trends and regulatory changes. a16z investments has a team of experts who continuously monitor market developments.