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Andreessen Horowitz creates $200-million 'growth-stage' investment fund

April 6, 2011 |  6:42 pm

  Cash

Andreessen Horowitz announced Wednesday the formation of a $200-million investment fund, pushing the firm to a total of $1.2 billion in investments overseen.

A16zlogo The Menlo Park, Calif., venture capital firm will use the new fund to invest in "growth-stage" companies that are past an initial "seed round" funding level or a secondary "venture round" funding stage, John O'Farrell, a general partner at Andreessen Horowitz, wrote in a blog post.

"These companies have a substantial need for capital -- they're hiring aggressively, expanding internationally, making acquisitions, investing in facilities, pouring money into marketing -- all to double down on their success and win the entire market," O'Farrell said of the types of companies the fund will target.

"Often, they want to meet their needs with one new investor. The size of their market opportunity allows for very attractive returns for the investor they choose to work with."

Andreessen Horowitz is known for its investments in successfull tech companies that have gone from start-ups to major players, such as Box.net, Facebook, Groupon, Skype, Twitter and Zynga.

The company is currently invested in more than 30 companies.

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-- Nathan Olivarez-Giles

twitter.com/nateog

Photo:  Cash.  Credit:  Getty

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