Andreessen Horowitz (a16z) has disclosed plans to invest $30 million in gaming startups with a tech focus, spanning AI, VR/AR, and Web3 games.

Andrew Chen, a general partner overseeing a16z’s Games One Fund, emphasized their interest in the convergence of technology and gaming, encompassing AI infrastructure, 3D tools, VR/AR, Web3 games, and more.

This investment will be distributed over the next 45 days through their early-stage accelerator program "SPEEDRUN," providing $750,000 to each participating startup. The 12-week program offers not only financial support but also guidance from industry experts, mentors, and a supportive community of founders. Chen highlighted a16z's inclusivity towards startups at various stages, from conceptual to revenue-generating.

Despite the high competition, with only 1% acceptance rate, 80% of the first cohort companies secured funding post-Demo Day. Applications for the next cohort close on May 19, with the program scheduled to run from July 29 to October 20, 2024, in Los Angeles, California. Notable Web3 gaming graduates from a16z's SPEEDRUN include Matchday and Promodium.

Chen manages the firm’s $600 million Game Fund One, which includes investments in prominent gaming platforms like Roblox, Sandbox, and Axie Infinity. Additionally, a16z has made strides in blockchain-based gaming investments through its cryptocurrency division, backing companies like Mythical Games, Yield Guild Games, and others.

The Web3 gaming sector is forecasted to expand significantly, with projections indicating growth from $154 billion to $614 billion by 2030, showcasing a compounded annual growth rate of 21.8%, as per a January report by Fortune Business Insights.