Interpreting a16z's $600 Million Gaming Fund Pitch Deck: Why Bet on Gaming?
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Interpreting a16z's $600 Million Gaming Fund Pitch Deck: Why Bet on Gaming?
On the one-year anniversary, Andrew Chen, manager of a16z Games Fund One, disclosed the fund's fundraising deck from 2022, which was analyzed by TechFlow.
Navigating Web3 tides with focused insightsProduced by: TechFlow Research
Author: 0xmin
A year ago, crypto venture capital giant Andreessen Horowitz (a16z) announced the launch of its first gaming fund, Games Fund One, with $600 million in capital. Over the past year, the fund has made 25 investments.
On the one-year anniversary, Games Fund One’s managing partner Andrew Chen revealed the fund’s original 2022 fundraising deck. DeepTide TechFlow has analyzed it and included updated commentary from Andrew Chen. For example, according to Chen, if he were writing this deck today when discussing "why now," he would definitely emphasize “AIAIAIAI” and position AI as a new core investment theme.
Overview: Why Gaming?
The main points are:
A vibrant consumer ecosystem has formed around gaming;
Games are typically the largest killer apps on new platforms;
Today's games also function as massive social networks;
Now, games themselves are undergoing transformative changes.
Andrew: Games are driving the GenAI revolution, and they're showcasing their cultural power in "moments of magic" — such as The Last of Us and Super Mario expanding into movies and other entertainment IPs.
Why Now?
a16z explains from four angles:
Emerging Markets: There are over 3 billion gamers worldwide today.
Younger Generations: 250 million children have become lifelong gamers.
Pandemic Acceleration: Non-traditional gamers entered the space at an accelerated pace during the pandemic.
Web3/VR Wave: Web3 gaming exploded in 2021; VR/AR is at an inflection point.
Andrew: This slide was about explaining “why now,” but today we’d update it with AI AI AI AI AI AI :)
Core Investment Areas:
Game Studios: Investing in next-generation games—cross-platform, monetized through online revenue, and player-driven.
Gaming-related Consumer Applications: For every new platform, games are often the biggest killer app—from PC to mobile, to VR/AR, and now Web3.
Infrastructure: Software and tools built for games will become foundational building blocks of the Metaverse, according to a16z.
Andrew: Last year, our focus was primarily on game studios, Web3, and infrastructure. This year, we maintain that focus, but are actively shifting toward artificial intelligence.
In Q1 alone, we met over 100 AI x Games companies. By 2023, 80% of our game fund’s investments had a major AI component—either redefining core gameplay or creating powerful new tools. We need to balance our investment strategy to cover all key areas of gaming while adapting to emerging trends.
What Advantages Does a16z Have in Gaming Investments?
a16z believes its advantages lie in the following aspects:
An investment team with deep experience in the gaming industry, including partners from major gaming companies like Riot and Tencent;
A specialized operational platform dedicated to game companies;
Cross-domain integration across gaming, crypto, fintech, and consumer tech;
a16z has ten years of experience investing in gaming.
Notably, a16z highlighted a dedicated empowerment platform built for game founders, offering support ranging from early fundraising, publishing, marketing, growth, recruitment, to commercialization. They’ve also established partnerships with the world’s leading game companies.
Strong post-investment support has always been a hallmark of a16z. Operational staff make up the vast majority of the firm, leading many to see a16z less as a traditional VC and more as a company or media organization.
Andrew: A major part of a16z’s differentiated approach is our ability to help portfolio companies with operations. In fact, most of a16z’s employees are focused on this—only a small fraction on investing. Game startups urgently need help in hiring, creators, distribution, and publishing.
Last year, we brought on @DougMcCracken from Supercell to lead marketing, @Chen from YouTube to lead the “creator” vertical, and @justmazer from Riot to lead talent recruitment. Everyone has an entrepreneurial mindset, and we all operate like owners—taking initiative without waiting for instructions. (And more are joining!)
Andrew: Given the economic downturn, we’ve spent countless hours working with our portfolio companies to maximize their chances of long-term success. This is where our operational strength really shines. Builders need help from builders—we built this team in our first year and hired talent from Blizzard, Supercell, YouTube, Riot, Twitch, and Unity!
In recent months, we’ve also launched SPEEDRUN, our game startup school, to make it easier for new founders to get started.
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