Silicon Valley VC firm Andreessen Horowitz is raising a third fund to the tune of $900 million, an unpaid blogger by the name of Michael Arrington reports. If the information checks out, the firm’s Fund III will be triple the size of its first fund, raised a little over two years ago.
Andreessen Horowitz has been very busy for such a young firm, but it’s hard to imagine that they didn’t see a heck of lot of deal-flow from day one, considering the networks and clout of its founding partners (Marc Andreessen and Ben Horowitz).
AH has investments in companies like Zynga, Foursquare, Airbnb, Kno, Groupon, Airtime, Box.net, Pinterest, Asana, Lytro, BOKU, Jawbone and many more (you can see a list of portfolio companies on CrunchBase). They also did ok with the sale of Skype, one of their first investments.
The firm has roughly $1.25 billion under management today, so the new fund (especially if they raise an additional round for follow-up investments just like they did with their second fund) will just about double that amount.
Arrington, who says his source has seen the documents, reports that the new fund will provide Andreessen Horowitz with the flexibility to invest anything “from $10,000 to $100 million” in fledgling startups and growth companies.
The firm now has five general partners (aside from Horowitz and Andreessen, there’s John O’Farrell, Jeff Jordan and Scott Weiss). Andreessen Horowitz also recently announced that it has brought on former U.S. Treasury Secretary Larry Summers as a special advisor.
In related news, Khosla Ventures just raised a $1 billion fund. A cash crunch? Where?