Andreessen Horowitz announced a new $7.2 billion fund on Tuesday it says is indicative of a “new era” in tech investing.

A blogpost written by Ben Horowitz, co-founder and general partner of the juggernaut Silicon Valley VC firm, announced that the fund had closed. “This is an important milestone for us,” Horowitz wrote. The new fund comes as tech investment is still at a comparative crawl to the breakneck pace of the funding that prevailed in 2021. Global funding in 2023 reached $285 billion, down 38 percent from the $462 billion invested in 2022, Crunchbase found. In 2021, global investment in startups surged to $643 billion.

The company, alternatively known as a16z, will allocate the funds across a few different categories: $600 million is going toward developing games, and $600 million toward its American Dynamism initiative that bankrolls defense, logistics, and aerospace companies. There is a $1 billion pot for app development, and $1.25 billion for infrastructure, which includes startups building AI foundational models. An additional $3.75 billion will go into a16z’s growth fund, which is usually distributed to late-stage startups that are nearing an exit or an IPO.

Horowitz remarked upon the growth of the broader VC industry since a16z’s founding in 2009. “Each submarket … has become as big as the original entire Venture Capital market,” he said. The fund is a milestone, per Horowitz’s thinking, because it caters to the multifaceted nature of today’s VC landscape and showcases the firm’s evolution. “To best serve the market, we created dedicated venture funds, each with its own team of experts and capabilities, specifically focused on each segment,” he wrote.

A16z has been willing to expand into new and unconventional areas in recent years: It spent lavishly on cryptocurrency startups during the industry’s initial boom time, with a $4.5 billion fund dedicated to crypto projects in 2022. Under the American Dynamism directive, the firm supports startups working in “the national interest,” which encompasses “aerospace, defense, public safety, education, housing, supply chain, industrials, and manufacturing,” the company says.

The firm has been proactive in areas beyond its normal area of tech investing. It is the leading donor to a Super Political Action Committee called Fairshake, which aims to fund the political campaigns of crypto-friendly candidates.

AI continues to dominate the conversation in tech. Much of the recent AI financing has come from incumbent tech corporations such as Microsoft, Google, and Amazon. Contrary to much of the hype, however, the biggest funding category in the first quarter this year was biotech, with $15.7 billion invested.