Framework Ventures Raises $400 Million Fourth Fund as Crypto VC Pushes Into AI, Robotics and Energy

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Key Takeaways:

• Framework Ventures closed a $400 cardinal 4th fund, FVIV, that is oversubscribed and already astir fractional deployed.
• Cofounders Vance Spencer and Michael Anderson are expanding into AI, robotics and vigor beyond crypto.
• The steadfast led robotics startup Mecka AI’s $60 cardinal round, signaling a frontier-tech pivot for the 2019-founded VC.

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A $400 Million Bet connected ‘Frontier Technology’

Framework Ventures, the crypto-focused task superior (VC) steadfast founded successful 2019, has raised $400 cardinal for its 4th fund. The vehicle, known arsenic FVIV, was oversubscribed and has already deployed astir fractional of its capital, cofounders Michael Anderson and Vance Spencer said.

Image source: X

The caller superior volition backmost what they called “frontier technology,” a sweeping word that spans crypto alongside artificial quality (AI), robotics and energy. The cofounders described the enlargement arsenic a effect to wherever founders successful their web are heading, alternatively than a retreat from blockchain.

Moreover, they declined to sanction their constricted partners but said backers see funds of funds, an Ivy League endowment, sovereign wealthiness funds and nonprofits, a roster that points to increasing organization comfortableness with crypto-native managers.

Beyond Crypto Into AI, Robotics and Energy

Framework has already begun penning checks extracurricular its accepted lane, with the steadfast starring a $60 cardinal Series A circular for robotics information startup Mecka AI successful June. It besides backed Daylight, a distributed vigor network, signaling that the AI-and-energy thesis is operational alternatively than aspirational.

The pivot lands during a softer agelong for crypto fundraising, arsenic token markets person cooled and task enactment has slown crossed the sector. Branching into AI and robotics gives Framework vulnerability to areas drafting dense capitalist interest, a hedge against a single-sector downturn adjacent arsenic the steadfast keeps its crypto roots intact.

Still, Spencer and Anderson said the enlargement does not correspond a departure from the blockchain/digital plus realm, and the money volition support investing successful stablecoins, tokenization and different onchain projects alongside its newer frontier-tech bets.

A Crypto Portfolio That Still Anchors the Firm

Framework’s existing crypto positions see lending protocol Aave, oracle web Chainlink, perpetuals level Hyperliquid, Jito Labs and stablecoin task Plasma (alongside a roster spanning decentralized finance ( DeFi), infrastructure and onchain trading offerings).

The steadfast has besides leaned into stablecoins astatine standard arsenic successful February of this year, it agreed to concern up to $500 cardinal done the Sky stablecoin ecosystem alongside owe institution Better, a woody that shows however acold Framework’s crypto bets present scope into accepted lending.

The 4th money holds its superior basal steady, fixed Framework raised $100 cardinal for a 2nd money successful 2021 and $400 cardinal for a 3rd successful 2022, meaning FVIV matches its predecessor successful size adjacent arsenic the concern strategy broadens good beyond tokens.

What the Raise Signals

Framework’s determination mirrors a broader displacement among crypto-native investors arsenic rival steadfast a16z has dispersed crossed AI and different frontier sectors portion holding ample onchain positions, and Framework’s enlargement suggests the enactment betwixt crypto VC and generalist tech investing is progressively blurred.

In immoderate case, a $400 cardinal excavation with a wider mandate means a deeper-pocketed backer consenting to money crypto, AI, robotics and vigor retired of the aforesaid vehicle. Whether the frontier-technology thesis pays disconnected volition hinge connected however Framework’s bets extracurricular crypto perform.