A16z raises $15b as VC slump continues, targets AI, defense

Andreessen Horowitz has raised over US$15 billion across five new funds, the firm announced, as large venture capital players continue to attract capital for tech startups amid rising interest in AI.

The firm, known as a16z, secured US$6.8 billion for a growth fund, US$1.7 billion for an AI infrastructure fund, and US$1.1 billion for a fund focused on national interests such as defense, supply chain, and housing.

Venture capital fundraising remains difficult, with only US$118.6 billion in new commitments closed last year.

A16z’s new funds highlight continued investor demand for AI and defense-related startups.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

a16z’s fundraising points to a flight to safety over sector strength

VC fundraising fell to $118.6 billion last year, nearly $100 billion less than in 2024, while a16z raised $15 billion and made up over 18% of US VC funds in 2025 1.
Fund III (2012) hit 11.3x Net Total Value to Paid-In (TVPI) by September 2025 with Coinbase, Databricks, and Pinterest 1. a16z has sent back at least $25 billion net to Limited Partners (LPs) since 2009, with much of its over $90 billion still on paper 2.
$6.8 billion goes to a growth fund for later stages where a16z holds stakes in 10 of the top 15 private companies by valuation 1. LPs lean on paper gains that need exits in an IPO and acquisition market.

Enterprise vendors can target a16z’s AI portfolio and unicorn network

a16z’s portfolio covers 44% of AI unicorn enterprise value 1, with $3.3 billion earmarked for AI infrastructure at $1.7 billion and applications at $1.6 billion 1.
American Dynamism backs defense, national security, and critical infrastructure 3. Armada builds satellite-linked deployable data centers 3. Epirus builds directed-energy systems that use high-energy microwaves or lasers 3. Anduril builds autonomous systems 3. Security and compliance vendors can pitch these firms as they scale with $1.1 billion 3.
a16z runs a platform team that helps portfolio companies on recruiting plus sales, marketing, and partnerships 1. It sets up vendor introductions and go-to-market (GTM) ties, so sales teams should engage these operators 1.