© Reuters. This Major Venture Capital Firm Is Launching A $600 Million Metaverse Fund For The Gaming Industry
Silicon Valley-based venture capital firm Andreessen Horowitz, or a16z, plans to launch a new $600 million metaverse fund.
What Happened: In a recent blog post, Andreessen Horowitz announced the launch of the fund, which would support innovation in the gaming industry and help build infrastructure for the metaverse.
“As games evolve into virtual worlds and online services, the demand for the tools and services needed to create great games is skyrocketing. Of course, this infrastructure is important for games in their own right. Yet, we also believe that the coming metaverse will be built by game companies, using game technology,” said Andreessen Horowitz.
According to the company, the fund will be used to develop game studios, consumer applications featuring supporting games, and the metaverse framework.
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Why it matters: “Games drive innovation across the consumer ecosystem, paving the way for the best user engagement, retention and monetization mechanisms, such as microtransactions, passes battlefield and web 3.0 tokens,” the blog post read.
“Over the past decade, games have undergone a dramatic transformation from mere packaged entertainment to online services that more closely resemble social networks and large-scale consumer technology companies,” the company added. .
In May, the company said it planned to invest around $500 million to support Indian startups.
Earlier this year, the company announced plans to raise $3.5 billion for its crypto venture fund and $1 billion for another fund focused on seed investments in crypto startups.
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