Framework Ventures, the crypto-focused venture firm, has raised $400 million in new funding to invest in early-stage companies across the Web3, blockchain gaming, and decentralized finance (DeFi) industries.
It has been reported that the completed funds raised will go toward “FVIII,” an oversubscribed fund worth $400 million. Approximately $200 million of that total will be allocated to the emerging blockchain gaming industry.
However, the venture firm, which had early exposure to DeFi, now has over $1.4 billion in assets under management. Framework Ventures was an early investor in projects such as Chainlink, Aave, and The Graph. Like DeFi in 2020, gaming and Web3 have been identified as the next major growth plays for the blockchain industry.
The report said that Axie Infinity, a popular play-to-earn (P2E) game constructed around collecting digital pet avatars called Axies, has provided a solid use case for this emerging paradigm. According to blockchain analytics platform Nansen, there are currently 2.8 million unique addresses holding 11.1 million Axies.
Likewise, Web3 is also fostering the continued growth of the nonfungible token (NFT) market by giving creators the ability to create NFTs with actual use cases inside virtual ecosystems. Venture funds and other smart money investors have been keen to back Web3 development companies.
On Tuesday, it was reported that KuCoin ecosystem companies had launched a $100 million Web3 developer fund focusing on NFT projects. Separately, crypto exchange CoinDCX has raised $135 million to support India-based Web3 projects. Beyond the blockchain industry, it’s believed that the play-to-earn model could have a significant impact on the future of gaming.
Thus, Myspace co-founder and former CEO Chris DeWolfe said that the business model of play-to-earn gives players more control over their in-game experiences.
Source: Cointelegraph