Framework Ventures Raises $400m For Its Third Fund


Among the original venture firms that came into the DeFi space, Framework Ventures announced the completion of the raising of FVIII, a $400M investment fund that was oversubscribed. It is meant for the early stage of blockchain gaming, DeFi startups, networks, and Web3.

Around $200M of the FVIII fund will be set aside for investing in the blockchain gaming sector. With the completion of the 3rd fund, Framework manages, at present around $1.4B in assets. That makes it the largest among the venture investments present in this sector.

Around 90% of the managed assets of Frameworks came from a closed group of institutional investors.

Framework is led by the ex-Netflix executive, Vance Spencer, and Michael Anderson, formerly of Snapchat. Framework is among the most popular firms to bet totally on DeFi back in 2019. The whole sector was a mere $1B in size then.

But as the decentralized finance sector saw fast growth, Frameworks became prominent as it was the earliest and largest investor in numerous multi-billion dollar protocols spanning the decentralized landscape. They include Chainlink, Aave, The Graph, and Tokemah.

The Emergence Of Crypto Markets And Gaming Has Seen Framework Expanding Rapidly

With the emergence of the blockchain gaming and social crypto markets and their maturity, Framework has expanded rapidly beyond DeFi to move into such new verticals. It invested in Zapper, the widely accepted and espoused Web3 tool, and also Illuvium, the blockchain game worth billions.

Web3 and gaming are the next big things and will fuel major growth in this blockchain sector, similar to what DeFi did in 2020. Axie Infinity is a solid example of this trending paradigm. Axie is an immensely popular P2E (play-to-earn) game that is built around the collection of Axie, pet digital avatars. Nansen, the blockchain analytics firm, has stated that there are at present 2.8M unique addresses with a total holding of 11.1M Axie.

Smart money investing firms and venture funds are also keen to support Web3 developers. KuCoin ecosystem has launched a Web3 developer fund worth %100M focused on NFT projects.

It is also believed that apart from the Blockchain industry, the P2E model could significantly impact gaming.