Framework Ventures Launches $400M DeFi and Web3 Gaming Fund

Key Insights:

• Around $200 million will be channeled into blockchain gaming startups.
• Framework Ventures was one of the pioneers in DeFi investments, backing protocols that are now billion-dollar-plus projects.
• More venture funding is flowing into the next iteration of the internet.

There is a river of venture capital currently flowing into projects focused on the next iteration of the internet, Web3. The latest big name in VC to launch a vast fund is Framework Ventures which has just announced its a $400 million “FVIII” fund.

The crypto venture firm now has $1.4 billion in assets under management following the addition of its latest and third fund, which was oversubscribed. Framework Ventures plans to invest in early-stage firms in the Web3, blockchain gaming, and decentralized finance (DeFi) sectors.

Around half of the fund’s total will be channeled into Web3 gaming and those that operate on the play-to-earn model.

Funding a Decentralized Internet

Web3 is the next evolution of the internet. Its predecessor, Web2, is the current state of the internet primarily dominated by centralized, profit-seeking tech and social media giants. Web3 will decentralize online data and put its control back with the people who use it through DAOs (decentralized autonomous organizations) and similar structures.

Framework Ventures, founded in 2019, was one of the early investors in DeFi during the booming summer of 2020. It has previously invested in now multi-billion-dollar DeFi protocols such as oracle provider Chainlink, lending platform Aave, and indexing protocol The Graph.

The company now sees significant potential in blockchain gaming but will continue its funding of select DeFi projects. Framework Ventures co-founder Vance Spencer, formerly from Netflix, said:

“We believe we have pioneered a new style of crypto investing, and we have and intend to deploy it aggressively across other major verticals in the blockchain industry.”

The firm has already identified gaming projects of interest, having led early rounds in gaming infrastructure platform Stardust. It also backs Illuvium, a $6 billion project that could launch the blockchain industry’s first Triple-A game.

Web3 Funds Emerging

Framework Ventures is one of several companies pouring investments into Web3 startups. In February, blockchain startup Alchemy raised $200 million to support Web3 development, and in March, Electric Capital raised $1 billion to invest in Web3 and DeFi projects. In April, Uniswap Labs launched Uniswap Labs Ventures to drive Web3 innovation and growth.

This week, crypto exchange KuCoin’s venture capital arm launched a $100 million “Creators Fund” to support Web3 creators and blockchain gaming, often called “GameFi.”