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Framework Ventures Investment Fund’s Portfolio Overview

What is Framework Ventures?

Framework Ventures was founded in 2019 by Michael Anderson and Vance Spencer.

It is an Investment Fund consisting of a group of technologists, researchers and investors, purchasing assets by builders and participants in open crypto-currency networks. Framework Ventures combines investment strategies with technologists and researchers to find, support and grow the best blockchain networks and companies.

The investment strategy of Framework Ventures is to take a low-volume approach, buy the project’s tokens, then facilitate network validation activities such as Validation or Staking, and work with the community to jointly develop. development of network support tools and services. The areas where the Framework is heavily focused are on development Web3, DeFi, token-based gaming (NFT), and decentralized media.

Although not long established, Framework Ventures has had certain successes and is considered by the community as one of the largest venture capital (VC) companies focusing on the field of decentralized finance and has a Portfolio. very good quality nowadays.

Team

Framework Venture has two founders, Michael Anderson and Vance Spencer, both with extensive experience in investment banking consulting, strategy management, and product development.

Michael Anderson: Co-Founder

  • Formerly an analyst at investment bank Barclays Capital.
  • He used to work as Product Manager at Dropbox, Snapchat in Silicon Valley.
  • More than 5 years of Internet product management experience.

Vance Spencer: Co-founder

  • Member of the Board of Directors of the Zapper project.
  • Worked as a business management consultant in Deloitte
  • Worked at Netflix and Monitor Deloite.
  • Spencer and Anderson once founded a game company called Hashists. Then, sell it back to a sports company called JDS Sports.

John Dicerbo: Chief Financial Officer

  • Former CFO of Numerai
  • Previously held the position of Deputy Director of UBS Investment Bank.

Raymond Pulver: Chief Technology Officer

  • Currently, he is the Chief Technology Officer of Connect Fintech Services S.A.
  • Formerly a Software Programmer for the University of Connecticut and Chief Technology Officer of Aurora.
Michael Anderson and Vance Spencer, Co-Founder Framework
Michael Anderson and Vance Spencer, Co-Founder Framework

Value of Framework Ventures

Framework Ventures has 2 times raised capital:

  • First time: July 2019, Framework fund raised $15 million from a fixed investor. The reputation of this fund is really well known since August 2020 thanks to the $8 million seed round funding deal for Framework Labs.
  • The second time: on May 14, 2021, Framework Ventures raised $100 million for its second fund, Framework Ventures Fund II and Hall Capital, a US company with registered assets under management of $42 billion. It is known that Hall Capital is also one of the investment advisors of Framework Ventures.

Framework Ventures’ Portfolio Overview

The Fund invests in about 38 projects, leading the fundraising round of 23 projects. In particular, this fund prefers to invest heavily in DeFi projects.

Framework Ventures Investment Fund's Portfolio Overview 1
Some outstanding investment projects of Framework Ventures

Synthetic

  • Synthetix (SNX): is a blockchain protocol that provides a solution for you to issue assets on the blockchain in a transparent and decentralized way. In a nutshell, Synthetix Network makes it possible for you to issue your own token when you have assets to lock up.

In October 2019, Framework purchased $5 million of SNX from Synthetix’s Foundation Treasury. The Fund will hold this SNX for 24 months through Staking. In addition, the Framework also announced that they also participate in the administration of Synthetix. The Framework Foundation wants to build a long-term development project together. This is reflected in the fund’s project management.

Lending

  • Aave (AAVE): This is a decentralized lending protocol based on smart contracts on the Ethereum blockchain. Aave allows the borrowing and lending process to be done at any time. At any time with instant completion. This process is faster than any current financial protocol.

In July 2020, the Framework fund together with Three Arrows Capital purchased $3M AAVE in the old token LEND for $0.10.

Asset Management 

  • dHEDGE: The project allows traders or investors to mirror the trading strategies of alias-driven bot traders or experienced professional individuals. dHEDGE smart contracts strengthen this relationship, ensuring fund managers do not have the power to liquidate the pool at all times. These user-generated groups are the most important aspect of the dHEDGE protocol. Anyone can open a pool and attract investors to manage their portfolio. Investors receive generic tokens in exchange for providing liquidity. And will be rewarded by dHEDGE with the above additional DHT tokens. And higher the pool amount to encourage more participation in these pools.

The dHEDGE project was invested by the Framework fund and other funds and investors in November 2020.

Gaming

  • Illuvium: Illuvium is a decentralized platform for the fighting game community and NFT collectors on the Ethereum network. By integrating with the Immutable -X solution on layer 2. Illuvium users can perform many tasks such as minting or trading assets while maintaining zero gas fees.

In March 2021, Framework led the Seed round to invest in the Illuvium project. In addition, the project also has the investment of other funds such as: Delphi Digital, Yield Guild Game, …

DEX

  • DODO: DODO is a Chinese decentralized finance (DeFi) protocol and on-chain liquidity provider that features a unique proactive market maker (PMM) algorithm that aims to provide liquidity and better price stability than automated market maker (AMM).

The framework led the seed round of the DODO project in August 2020. Other investors in this investment round include: Bobby Ong (CoinGecko), Jason Choi (Spartan), DeFiance,…

Infrastructure

  • Ranger Protocol: is a blockchain infrastructure that supports NFT professionally. Create a high-performance blockchain pool with cross-chain interoperability between EVM systems of multiple blockchains. Allows developers to freely create complex decentralized applications. Provide users with an experience similar to Internet applications.

Framework Foundation, Pantera and SevenX lead the Seed round of the Ranger Protocol project in May 2021.

  • Chainlink: is a decentralized platform, aiming to solve the problem of data connection between applications and the blockchain network and vice versa between blockchain and applications.

It is known that the Framework fund invested in the Chainlink project since 2017. And at that time, this fund was one of the top 4 Chainlink holders.

  • The Graph: is a protocol for organizing blockchain data (the first step is the Ethereum network). Helping developers of applications that need to access data of the blockchain system easily, conveniently and synchronously.

In July 2020, the Framework fund together with ParaFi, Coinbase Ventures invested from the strategic round of this project.

Yeild Farming

  • Yearn.finance: is a decentralized asset management platform that has many uses from providing liquidity, lending to insurance. The most prominent product in its ecosystem is Vaults, which maximizes user output through various yield farming strategies suggested by the community.

Framework Ventures’ Portfolio Review

Framework Ventures is considered a fund with a good growth rate of return. This is reflected in the ROI of the projects in the fund’s portfolio which is quite impressive.

Some prominent projects with high ROI (ATH price vs. ATL price) include:

  • Yearn Finance (YFI): 12.635%
  • Synthetix (SNX): 88.305%
  • Chainlink (LINK): 41.868%
  • Rari Capital (RGT): 25.480%
  • Illuvium (ILV): 9.637%

Typical projects with outstanding ROI in 2021 include:

  • Aave (AAVE): ROI increased 467.7% in 2021
  • Illuvium (ILV): token up 44.9% in October 2021

Framework Ventures comment

Looking at the portfolio of the Framework fund, it is easy to see that the fund has some of the following characteristics:

  • Framework funds typically invest in projects early on and tend to be at the forefront of investment rounds. The percentage of leading investments in projects accounts for quite a large percentage in the portfolio of this fund.
  • Framework Ventures is also actively involved in project construction, incubation and project support. Thereby making the investment more effective, promoting the project’s portfolio to grow well
  • This fund tends to focus on investing heavily in DeFi projects. However, the fund’s investment portfolio is distributed in different segments.
  • In its portfolio, the fund invests mainly in projects belonging to the Ethereum ecosystem.

Summary

Framework is a fund with a unique investment strategy. This is reflected in the very good growth in investment returns of the fund. Surely, this is a fund with a lot of potential for development and explosion in the future, worth your reference.

Above is an overview of the Framework Ventures fund and its Portfolio. Hopefully this article will help you have a better overview of the Framework Ventures fund as well as the style and portfolio of this fund.