Cryptocurrency News

a16z Launches $600M Gaming Fund to Power the Metaverse Future

By May 19, 2022 No Comments

Key takeaways:

  • Leading crypto investment firm 16z has launched a $600 million fund to pursue investment opportunities in the gaming sector
  • “GAMES FUND ONE”, as the new fund is called, will invest gam studios, infrastructure, and gaming-focused social platforms
  • a16z is joined in the fund by some of the biggest names in the gaming industry, including the founder of Roblox David Baszucki and the founder of Discord Jason Citron

a16z raises $600 million to pursue investments in the gaming industry

One of the leading cryptocurrency venture capital investors, a16z, has announced a $600 million “GAMES FUND ONE” fund, designed to pursue investment opportunities in the gaming sector. According to the official statement, the firm believes “games infrastructure and technologies” will play a pivotal role in the future of the Metaverse.

With a $600 million battle chest, a16z aims to invest in three key areas – namely, game studios, infrastructure, and Twitch and Discord-like platforms, which are essential building blocks when creating gaming communities.

Some of the biggest names in the game industry are taking on an active role in a16z’s fund, such as the founder of Roblox David Baszucki, founder of Discord Jason Citron, and cofounder of Riot Games Mike Morhaime. Cofounders of Sky Mavis, the creators of one of the most popular blockchain games Axie Infinity are also involved with the newly launched fund. 

a16z believes that the Metaverse is slated to trump the existing $300 billion gaming industry going forward. A recently issued report by the banking behemoth JPMorgan agrees with this optimistic stance – the bank called the economic and entertainment opportunities in the Metaverse essentially “limitless”.

The investments in the metaverse space have seen a massive spike over the past year. Case in point, in January, Microsoft announced it is acquiring Activision Blizzard for $68.7 billion to expand its metaverse presence. Meanwhile, tech giant Apple and entertainment behemoth Disney also deepened their ties to the growing industry.