Framework Ventures allocates half of $400 million fund to Web3 games

Crypto-focused venture firm Framework Ventures has raised $400 million in new funding to invest in early-stage companies in the Web3, blockchain gaming, and decentralized finance (DeFi) industries.

The completed capital raise goes to “FVIII,” an oversubscribed fund valued at $400 million, the company announced on Tuesday. Approximately $200 million of this total will be allocated to the burgeoning blockchain gambling industry.

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 like Chainlink, Aave, and The Graph.

Like DeFi in 2020, games and Web3 have been identified as the next big growth games for the blockchain industry. Axie Infinity – a popular play-to-earn game built 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 with 11.1 million axes.

As Cointelegraph reported, Web3 is also fueling the continued growth of the non-fungible token market by allowing developers to create NFTs with actual use cases within virtual ecosystems.

Related: An open invitation for women to join the Web3 movement

Venture funds and other smart money investors have been keen to support Web3 development companies. On Tuesday, Cointelegraph reported that companies in the KuCoin ecosystem have raised a $100 million Web3 developer fund focused on NFT projects. Separately, crypto exchange CoinDCX has raised $135 million to support India-based Web3 projects.

Beyond the blockchain industry, it is believed that the play-to-earn model could have a significant impact on the future of gaming. Chris DeWolfe, co-founder and former CEO of Myspace, told Cointelgraph that the play-to-earn business model gives players more control over their in-game experience.