The crypto market has been lackluster, while AI continues to surge. An increasing number of digital asset venture capitalists are expanding beyond blockchain. San Francisco-based Framework Ventures is the latest to join this trend, announcing on Friday that it raised $400 million for its fourth fund.
$400 Million Fourth Fund: Betting on 'Frontier Technology'
Co-founders Vance Spencer and Michael Anderson declined to name their LPs but disclosed that contributors include funds of funds, an Ivy League endowment, sovereign wealth funds, and nonprofits. According to a December 2025 SEC filing, the firm held $1.28 billion in assets under management.
The duo plans to deploy the capital into what they call 'frontier technology,' a broad term encompassing crypto, AI, robotics, and energy. While it might seem like Framework is jumping on the AI bandwagon, Anderson said the firm is actually following the shifting interests of its founder network. 'We can see these founders leading us in this direction. We should pay attention,' he added.
From DeFi to AI: The Strategic Pivot of Crypto VCs
After a brief boom following President Trump's election, the crypto market has petered out over the past eight months, with Bitcoin approaching lows not seen since 2024. Meanwhile, AI companies like Anthropic and OpenAI continue to balloon in valuation as VCs anticipate historic returns from potential IPOs.
Competitors are also shifting focus. Paradigm, one of the largest crypto VCs, is reportedly raising up to $1.5 billion for a new fund targeting crypto, AI, and robotics. Haun Ventures, founded by a former a16z crypto partner, has raised $1 billion for a second fund aimed at blockchain, AI, financial services, and alternative assets.
Launched in 2019, Framework made its name as an early backer of DeFi protocols. Despite being Big Tech alums (Spencer from Netflix, Anderson from Snapchat), they quickly won over crypto's 'degens.' Early investments include Aave and Chainlink, both now dominant in DeFi. The firm raised a $100 million second fund in 2021 and a $400 million third fund in 2022 exclusively for crypto. Now, Framework is touting non-crypto bets such as robotics startup Mecka AI and public mortgage issuer Better.com. Anderson said about half of the fourth fund has already been deployed.
Crypto-Native VCs' AI Awakening: Weekend Paper Readings
As AI saturates Silicon Valley — even billboards — crypto-born investors cannot help but keep up. Anderson revealed that Framework has hosted weekend AI research paper reading sessions at its San Francisco office. 'Just because we're crypto doesn't mean we haven't been paying attention,' he said.
Notable Venture Deals This Week
- Mirendil (San Francisco AI research) raised $200M seed from a16z and Kleiner Perkins.
- Taktile (NYC agentic decision platform for finance) raised $110M Series C led by Goldman Sachs Alternatives, joined by Tiger Global, Index Ventures, Y Combinator.
- Trase (McLean, VA AI OS for regulated industries) raised $107M seed led by Bob Nelson and ARCH Venture Partners.
- Scaled Cognition (Mountain View AI lab for enterprise CX workflows) raised $100M Series A led by Khosla Ventures, joined by Lerer Hippeau, SilverCircle.
- Arca (NYC AI-native wealth management) raised $64M across seed and Series A; General Catalyst led the $48.5M Series A, joined by Index Ventures, Venrock.
- Warp (NYC AI payroll compliance startup) raised $60M Series B led by Battery Ventures, joined by Peak XV, Sound Ventures, Y Combinator.
- Hera (NYC elder care company) raised $27M Series A led by Bain Capital Ventures, joined by Accel, IA Ventures.
- Nebulock (Boston contextual security startup) raised $25M Series A led by FirstMark, joined by Bain Capital Ventures, Decibel.
- Netris (Santa Clara network automation for AI infra) raised $15M Series A led by a16z.
- Kotoba Technologies (SF/Tokyo voice AI) raised $10M led by Kindred Ventures, joined by Salesforce Ventures, Sony Innovation Fund.
- Tomo (SF personal AI) raised $5M seed led by Bain Capital Ventures, joined by Accel, Align Fund, Basis Set, Conviction, Pear VC.
- Samepage (SF AI team products) raised $4.9M from Craft Ventures, Freestyle VC, Glasswing Ventures, angels.
- Kalipso (Barcelona regtech platform) raised $3.2M seed led by Varsity, joined by Lanai Ventures, Plug and Play, Kima Ventures, Vento.