Andreessen Horowitz, which has already invested most of its $300 million debut fund that it raised last year, is targeting $650 million for its second fund, according to multiple limited partner sources.
Andreessen Horowitz declined to comment, citing regulatory restrictions.
As previously reported, Andreessen Horowitz, the stage agnostic venture firm launched by high-profile entrepreneurs Marc Andreessen and Ben Horowitz, is expecting to close its second fund by the end of the year.
When Andreessen Horowitz launched, Andreessen said the fund would be less concerned about the stage of an investment and more concerned about whether it was investing in a “franchise company.”
He noted in an interview with VCJ in July 2009 that the firm would invest in such companies at any stage, and would invest as little as $50,000 or as much as $50 million in a single round. “Our view is when you find one of those franchises … you want to invest as much as you can both in time and effort across as many rounds as you can,” he said at the time.
The firm has certainly not shied away from big deals. Last December, it participated in a $180 million Series C round for the San Francisco-based social games company Zynga Game Network Inc., which has raised about $365 million over four financings from more than a dozen investors.
Andreessen Horowitz also participated in a $45 million Series C round for Salt Lake City-based Fusion-io, a storage startup that has raised $112 million altogether over three rounds, including from New Enterprise Associates and Lightspeed Venture Partners.
Last fall, Andreessen Horowitz injected $50 million (or one-sixth of its inaugural fund) into Skype for less than a 5% share of the company. The firm was part of a consortium led by Silver Lake Partners that bought a controlling interest in the Internet phone company.
LP sources say that $650 million target would enable Andreessen Horowitz to make multiple Skype-like bets.
Since it raised its first fund, the firm has added to its roster Partner John O’Farrell, who most recently was the head of business development at the smart grid company Silver Spring Networks. O’Farrell was once a business development executive at the software company Opsware, which Andreessen and Horowitz co-founded and later sold to Hewlett-Packard in 2007 for $1.6 billion.
Other new additions at Andreessen Horowitz include Marketing Partner Margit Wennmachers and Jeffrey Stump, a partner in charge of executive recruitment. —Dan Primack and Constance Loizos