- Andreessen Horowitz (a16z) raised over $15 billion across five new funds, its largest haul ever, and accounted for more than 18% of U.S. VC deployed in 2025.
- The raise spans growth, apps, infrastructure, American Dynamism (defense/supply chain/housing), and bio & health, with about $3 billion earmarked for other strategies.
- The fundraising stands out amid a 2025 VC downturn with fewer new funds, even as exit values rebounded sharply led by AI-related companies.
- a16z now manages over $90 billion and frames the push into AI and defense as part of U.S. competition with China.
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The US venture capital landscape in 2025 was characterized by weak fundraising and fewer new funds, but strong exit activity, particularly among AI-centric companies. In this environment, a16z’s ability to raise more than US$15 billion places it among the few firms with both scale and conviction to pursue large, diversified mandates. The firm has expanded its suite of funds to cover growth-stage, infrastructure, American Dynamism (defense, supply chain, housing), Bio & Health, and miscellaneous strategies, reflecting a broad thesis that technology, geopolitics, and national security are converging.
Strategically, a16z is signaling that it believes winners in AI and defense-related sectors will need capital-intensive support over long horizons—and that these are areas where U.S. leadership is contestable versus China. Anchoring a substantial portion of its raise (~US$6.75 B) in growth equity underscores an emphasis on scaling companies to global scale rather than early-stage bets. The “American Dynamism” allocation, while smaller than growth, indicates a deliberate alignment with policy priorities and national capacity building.
From an investment banking perspective, several implications arise: LPs may increasingly concentrate capital into top-tier firms that demonstrate access to deal flow and ability to mobilize large funds. Given a16z’s dominance, competition for deals in AI, infrastructure, and defense tech intensifies, raising valuations and potential entry prices in those sectors. M&A exit horizon may shorten at certain stages if liquidity continues improving. However, downside risks remain: inflation, interest rates, regulatory policy (especially China, defense exports, AI oversight), and possible overvaluation in AI subsets.
Open questions to monitor include: What terms do these funds have (fee, carry, fund life, GP commitments)? How will a16z balance these large funds across early-stage vs later-stage capital deployment? What specific technologies within AI infrastructure or American Dynamism is a16z targeting? And how will regulatory and geopolitical shifts—e.g. export controls, licensing, national security reviews—affect its deal pipeline and portfolio valuations?
Supporting Notes
- a16z raised over US$15 billion across five funds, its largest ever fundraising effort.
- The breakdown: US$6.75 billion for Growth; US$1.7 billion each for Apps and Infrastructure; US$1.176 billion for American Dynamism; US$700 million for Bio & Health; ~US$3 billion for other strategies.
- This haul represents more than 18% of all U.S. venture capital allocated in 2025.
- a16z currently manages over US$90 billion in assets under management.
- Global VC fundraising in 2025 dropped to US$118.6 billion, the lowest in a decade, with only 537 new VC funds closing.
- Global exit value rose to US$549.2 billion in 2025, up more than US$200 billion over 2024, though IPO count declined year-over-year.
- Horowitz quoted saying: “The technology landscape … is… intensely competitive with China … At this moment … it is fundamentally important for humanity that America wins.”
- Last major fundraising for a16z was in April 2024, when it raised US$7.2 billion across five funds.