Venture capital firm Andreessen Horowitz (a16z) has launched a $600 million fund dedicated to gaming startups with a focus on Web3 saying it believes “games infrastructure and technologies will be key building blocks of the Metaverse.”
Dubbed “GAMES FUND ONE” thewill invest in three main areas: game studios, consumer applications which support player communities with Discord used as an example, and gaming infrastructure providers.
The a16z team said “the comingwill be built by games companies, using games technologies” and that the industry has already “solved many of the problems that need to be solved to create the Metaverse.” It believes games will become the “dominant way people spend time.”
The move by a16z marks nearly $3 billion committed by venture funds and gaming industry giants into Web3 gaming or Metaverse projects since mid-April. Venture firm White Star Capitalfor its decentralized finance ( ) and gaming focused fund along with a projects by Framework Ventures both taking place in April 2022.
Metaverse projects are also gaining massive sums from gaming industry titans. Last month Epic Games, creator of the popular Fortnite title,with funding from Sony and LEGO.
The team at a16z pointed at the billions of dollars in revenue thatgenerate, using the open world game as an example of a title that has retained a long-term active community which functions more like a social network. Minecraft is the current all-time highest selling game and has seen 173 million average monthly players over the past 30 days according to figures from game statistics platform despite it being released almost 11 years ago.
The fund is the first by a16z solely dedicated to games but the firm has backed successful game related projects in the past includingng virtual reality (VR) company Oculus and game developer Zynga saying the investments “cemented our belief that games require a specialized focus.”
Joining the fund were founders of game development companies and popular games such as the co-founder of Riot Games, cofounders Aleks Larsen and Jeffrey Zirlin of Sky Mavis which owns the and Kevin Lin, founder of gaming company Metatheory which received led by a16z.