The new VC fund from Andreessen Horowitz comes amidst a slowdown in the VC economy.

Andreessen Horowitz, a renowned venture firm that has invested early in major tech companies like Airbnb (NASDAQ: ABNB) and Coinbase (NASDAQ: COIN), has launched a new fund called a16z Perennial Venture Capital Fund. The firm aims to sustain its growth despite the slowdown in traditional venture capital funding. The evergreen fund will operate from Andreessen Horowitz’s Menlo Park office and has been registered with the U.S. Securities and Exchange Commission.

In addition to the new fund, Andreessen Horowitz has also registered its Perennial Management business, classified as a “large advisory firm” with an Asset Under Management (AUM) of $105 million. The firm’s advisory services will cater to high-net-worth individuals, small businesses, pooled investment vehicles, private fund managers, wealth management advisers, and financial planners. (TechCrunch)

The Perennial Management business has 18 clients and employs eight individuals, including Chief Investment Officer Michel Del Buono, who was hired in the previous year. The firm has not provided any official comment on these recent developments.

Andreessen Horowitz’s move towards wealth management services aligns with its strategy to manage the wealth of its partners and portfolio company executives. This approach allows the venture firm to retain its shares in publicly traded companies rather than distributing them to limited partners (LPs), similar to Sequoia Capital’s evergreen fund in 2021. Given the current decline in the public market and the decreased value of public shares due to economic turmoil, Andreessen Horowitz sees potential for upside growth.

Like other venture capital firms globally, Andreessen Horowitz has experienced a slowdown in startup investments due to market conditions. To address this, the firm has been seeking capital from Saudi Arabia and has started a fund-of-funds to expand its network and gain early access to promising early-stage companies.

These efforts aim to position Andreessen Horowitz favorably in the competitive landscape of venture capital.

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