Framework Ventures Allocates $200M USD to Fund Web3 Gaming
It seems the firm has strong conviction surrounding Web3 gaming, as this allocation amounts to half of its entire fund.
Framework Venture’s third and most recently announced fund “FVIII” will have a primary focus on investments in early-stage blockchain gaming, Web3, and DeFi startups and networks. Of the $400 million USD this fund contains, 50%, or $200 million of it, will be used to invest in the blockchain gaming space.
Framework is led by co-founders Michael Anderson and Vance Spencer and is most well known for being one of the first venture firms to heavily invest in the DeFi space in 2019 — at this time the entire sector was reportedly worth less than a billion dollars, the venture firm itself now manages over $1.4 billion USD in assets.
Arriving early on the scene, the firm experienced accelerated growth by investing in several now multi-billion-dollar protocols, these include Chainlink, Aave, The Graph, Tokemak, and more. With the emergence of new markets like blockchain gaming, the firm has now expanded its investments into brands like the widely adopted Web3 tool Zapper and the multi-billion-dollar blockchain game Illuvium.
“We think this is really the end of the beginning for crypto, and consumer-ready experiences such as gaming are ready to open the floodgates in terms of new users,” said Framework Ventures co-founder Michael Anderson. In another comment, Anderson mentions that he believes the next stage of the blockchain industry will be entirely about onboarding new users and that gaming is the biggest opportunity of all to do so. With the incentive of play-to-earn (P2E) models and the popularity of “fun-to-play” triple-A games, Anderson is confident this is the area that will see the most growth.
The firm itself predicts that “blockchain gaming will become one of the largest forms of employment in the world, with billions of people attracted to the allure and access of better economic opportunities found in entirely new digital universes.”
Elsewhere in Web3, IMF Issues New Recommendations for DeFi Governance.