Raising $8 million in funding! What will the venture capital firm Framework, which previously invested in Chainlink and Aave, do with this money?

Framework Ventures, a early-stage venture capital firm that has invested in well-known projects such as Chainlink, Synthetix, and Aave, announced yesterday (27th) that it has completed a seed round funding for its sister company, Framework Labs. Framework Labs will use this funding to continue supporting new projects in the decentralized finance (DeFi) space through practical actions.

Framework Labs Seed Round Financing

According to a report byForbes, the financing round was led by investment firm Station 13, with Framework Labs raising $8 million in seed funding. The Framework Labs team stated that the next round of funding will be used for research, trading, and development teams. Michael Anderson, co-founder of Framework Ventures, said in an interview:

"We are proud to introduce Framework Labs to the public, and this is also a manifestation of Framework Ventures' investment model 'Network Capital' theory."

Although Framework Labs was officially unveiled today, it has actually been around for a while. According to Forbes, it claims to be the largest stakeholder in the decentralized exchange Synthetix and also a major liquidity provider on the Uniswap platform.

The difference between Framework Ventures and Framework Labs is that while Framework Ventures can inject the necessary funds for new startup teams, Framework Labs can provide substantial assistance to new projects in terms of technology, liquidity, ecosystem building, and becoming early network participants. One example is that in the early stages of Synthetix development, Framework Labs developed a beautifully designed UI/UX data analytics platform, "snx.tools," for other network participants to use, thereby strengthening Synthetix's ecosystem. Co-founder Vance Spencer stated:

"DeFi has entered its own race and achieved perfect 'product-market fit,' but at the same time, traditional investors have not fulfilled their responsibilities. Simply buying and holding tokens and providing 'thought leadership' is not enough. Investing in DeFi should not be like watching a game from the sidelines. Investors should actively participate, govern, build products, and provide advanced trading strategies, all of which are necessary factors for the success of DeFi protocols. We are at the forefront of this financial technology."

Leading DeFi Venture Capital Institutions

Established in 2019, Framework Ventures is a venture capital team composed of developers, researchers, and investors. Its self-created new investment model "Network Capital" has brought huge profits in recent years. Framework Ventures' investment portfolio includes: Chainlink, Aave, Synthetix, Kava, Future swap. Today, it has been reported that Framework Ventures has completed seed round financing for two projects, the decentralized exchange DODO and the DeFi asset management platform Zapper.

Anderson and Spencer stated that Framework Ventures will continue to contribute to the DeFi field. Many protocols in the current market may fail, but those that can identify common points and correctly combine key pieces may become the most valuable platforms in the world. However, this will not make them like today's tech giants, only bringing value to founders and early investors. This time, users will also join in the celebration.