Andreessen Horowitz raises additional $200M

Venture capital firm Andreessen Horowitz raised a $200 million co-investment fund, giving it flexibility to invest in growth stage companies.

With a marketing blitz that has become routine for the firm—beginning with a blog post—the firm disclosed that the added capital, raised from existing LPs, will “be invested alongside our Fund II, enabling us to write larger checks for the best growth opportunities whenever necessary.”

The additional round of capital brings the firm’s total assets to $1.2 billion.

Andreessen Horowitz also noted the new fund is isn’t charging any management fees on the $200 million. “In other words, we will only make money if our investors make money.” And it stressed that it’s “not a separate growth fund, meaning there’s no pressure to invest it. If we continue to see great growth opportunities, we’ll invest. If we don’t, we won’t!”

Given that the 22-month-old firm burned through its first, $300 million, fund in little more than a year’s time and closed it second, $650 million, fund just last November, it’s hard to imagine that the $200 million will be left untouched for long.

We continue to see really high-quality growth companies coming out, and some are looking for significant checks

John O’FarrellGeneral PartnerAndreessen Horowitz

“We’re seeing an amazing crop of high-quality companies graduate to the growth stage, and this fund lets us work with the very best of them,” Andreessen Horowitz General Partner John O’Farrell wrote on the blog post. Before joining Andreessen Horowitz, O’Farrell most recently ran business development at the smart grid company Silver Spring Networks.

O’Farrell told VCJ that the firm has eight growth stage investments in its portfolio, which includes stakes in Twitter, Facebook, Groupon, Zynga Game Network, Aliph, Skype, Box.net and Fusion.io (which is inregistration for an IPO). The firm has board seats on three of those companies: Aliph, Facebook and Skype.

“Some are real household names; others, we believe can be among the household names of tomorrow,” he said. ”We continue to see really high-quality growth companies coming out, and some are looking for significant checks. This gives us the ability to [fund them].”

In addition to raising new funds, Andreessen Horowitz recently brought Scott Weiss and Peter Levine as additional partners.

Jennifer Saba of Reuters contributed to this report.