Last summer’s decentralized finance (DeFi) craze pumped massive gains into Framework Ventures’ flagship fund, the $14 million principal investment that has snowballed into $300 million under management.
The two-year-old DeFi studio and venture capital firm is now preparing to undergo a company-wide expansion.
Framework emerged from stealth mode in August 2020 with $8 million in seed funding. Now, less than a year later, co-founder Michael Anderson told CoinDesk he aims to double Framework’s headcount – across engineering and project teams – to 30 by the end of 2021.
Recent top hires have begun filling Framework’s c-suite positions. Since October, the firm has hired a finance chief in John DiCerbo, a Numerai veteran; a tech lead in DeFi engineer Ray Pulver; and a Principal in Roy Learner of Wave financial.
Anderson’s tasked Learner with managing a venture fund anchored by tokens SNX, AAVE, LINK, YFI and GRT – “some of the big wins,” he said, that have pushed the fund’s value into the hundreds of millions. Each position is targeted to around 5% of the network, he said.
He said asset growth drove the fund's increase, not new subscriptions. The only investments came at the start of the fund.
Inside the venture fund is a Labs division, the DeFi studio where in-house engineers build products tailored to Framework’s invested networks. Those projects’ core teams often work directly with Framework, Anderson said, making the whole thing function as a pseudo-incubator of sorts.
“We really need a software first tact at helping provide additional services,” Anderson said. “We’re adding services that help these networks – more so in the way of just dollars.”
CORRECTION (Feb. 11, 2021, 19:00 UTC): Framework's DeFi fund launched with a principal investment of $14 million, not $14.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.