Can Andreessen Horowitz--headed by Marc Andreessen of Netscape fame and Ben Horowitz--save the venture capital industry? It certainly made some waves when it announced that it had raised $650 million for its second fund--in just three weeks. That's a large amount in a short time period, especially for a new fund.

Some think the firm is really shaking up the old order on Sand Hill Road. They have brought the principles of angel investing--some call it Super Angel investing--to the mainstream industry, and in so doing have breathed new life into it. The trend has led to the formation of new firms, like First Round Capital and True Ventures and prompted the established order, represented by the likes of Kleiner Perkins Caufield & Byers, to jump on the trend as well.

It remains to be seen if Andreessen Horowitz will become a home run for its limited partners. So far, none of the 28 companies they have invested in have managed exits. But Apple and Google are both chasing Boku, a mobile payments company, and Skype is slated to go public next year, notes the LA Times.

The larger question is whether the industry itself will recover soon. There has been some stepped-up exit activity, but that has not translated into improved venture capital returns industrywide. Some believe that returns will pick up again next year.

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