I don’t need to convince anyone that venture capital is a cottage industry and hasn’t scaled well as more money has poured into the asset class. So why is more money pouring into venture? Because even though overall venture returns are abysmal, the top funds will always perform. Andreessen Horowitz has the momentum to succeed in today’s environment because they have all the right ingredients (and the access/deal flow). And when they succeed, they’ll be taking other firms’ lunches. Venture capital is a Pareto Optimal game so while these guys are high fiving each other, the rest of Sand Hill Road is probably throwing chairs across the office.
The fundraising crunch doesn’t seem to be hitting venture capital firm Andreessen Horowitz, which announced today that it has raised $650 million for a second fund, more than doubling the $300 million it raised 16 months ago.
via Andreessen Horowitz Doubles Down, Raises $650 Million Fund: Tech News «.
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