Framework Ventures – a crypto-focused venture capital firm – recently secured $400 million for its third crypto-focused fund. Half of the money will be invested in the blockchain gaming space, with the rest going to Web 3 and decentralized finance (Defi) projects.
Venture into the crypto game
Like announcement by the company today, the new fund – called “FVIII” – brings Framework Ventures’ assets under management to $1.4 billion.
In 2020, the company established itself as an early investor in Defi, back when the total value locked on associated protocols was only around $1 billion. Some of his investment picks included Chainlink, Graph, and Aave, when the fund was only worth $100 million.
At the time, Framework Ventures expected Defi to be on the verge of mainstream adoption. Today, the company feels the same way about blockchain gaming.
“We believe blockchain gaming is the best funnel opportunity for crypto over the next decade, and we are positioning ourselves accordingly,” the company said on Twitter Tuesday.
Gaming has become the largest form of media in the world, with 3 billion monthly active players. Many crypto developers have attempted to merge the massive industry with the blockchain world, using play-to-win features and NFT integrations.
Although games like Axie Infinity and The Sandbox have garnered great interest in the crypto market, they still struggle to compete with mainstream titles. Additionally, attempts to integrate NFTs and crypto into existing top franchises have not gone smoothly with the gaming community.
However, Framework may expect this to change over the course of the year. The team says several blockchain games with “hundreds of developers” are gearing up to launch, and predicts that P2E features will converge with triple-A games that are “actually fun to play.”
The company has previously invested funds in the Stardust gaming infrastructure project and a purported triple-A blockchain game, Illuvium. Framework reached out to other founders looking for potential partners and promised to help build alongside them.
NFTs are a “natural extension” of the game
Gaming giant SEGA – the company behind Sonic the Hedgehog – recently launched its own “Super Game” initiative which will include games built with NFT technology. SEGA producer Masayoshi Kikuchi called NFTs a “natural extension for the future of gaming” earlier this month.
The bridging of NFTs and cryptocurrencies across multiple digital worlds has become central to the “metaverse” – the concept of a global virtual reality that consumes us more than our physical reality.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off Binance Futures fees for the first month (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to receive up to $7,000 on your deposits.