Framework Ventures grabs $400 million, allocates 50% to Web3 gaming

Crypto-focused venture capital firm, Framework Ventures, has announced that it has raised $400 million in a funding round.
Crypto-focused venture capital firm, Framework Ventures, has announced that it has raised $400 million in a funding round.

Crypto-focused venture capital firm based in San Francisco, Framework Ventures, has announced that it has raised $400 million in a funding round. The company aims to invest in early-stage companies and entrepreneurs across the Web3, decentralized finance (DeFi), and blockchain gaming industries.

As per Tuesday’s announcement by the company, the complete funds raised will go to an oversubscribed fund, “FVIII,” worth $400 million. Notably, around $200 million of the total is decided to be used in the emerging blockchain gaming industry.

The venture capital firm, which was one of the first to invest in DeFi, today manages over $1.4 billion in assets. Framework Ventures was an early investor in Chainlink, Aave, and The Graph, among other businesses.

Gaming and Web3 have been touted as the next key growth prospects for the blockchain sector, similar to DeFi in 2020. Axie Infinity, a popular play-to-earn (P2E) game based on collecting digital pet avatars known as Axies, has provided a good example of this new paradigm. There are currently 2.8 million unique addresses holding 11.1 million Axies, according to blockchain analytics firm Nansen.

Web3 is also promoting the continuous expansion of the non-fungible token (NFT) market by allowing producers to construct NFTs with real-world use cases within virtual ecosystems.

Web3 development firms have attracted the attention of venture capitalists and other smart money investors. Recently, KuCoin ecosystem companies have announced a $100 million Web3 development fund aimed at NFT applications.

Framework Ventures is the latest in Blockchain gaming

Not only Framework Ventures, but several big names have been trying their hands on Blockchain gaming. As TheCoinRise reported, the popular PC and console game Fornite-owner, Epic Games, has secured $2 billion funding from Sony and LEGO. The Venture capital giant Animoca Brands also has recently announced the acquisition of Eden Games.