Framework Labs raised $ 8 million in a funding round
Framework Labs, a sister company to Framework Ventures, raised $ 8 million in a new seed round.
Station 13, an investment firm focusing on blockchain endeavors related to sports, media, and entertainment, led a fundraiser for Framework Labs. $ 8 million was raised. The framework will use these funds to enlarge its team of researchers, traders and engineers. The company has already hired former CTO and co-founder of the IDEX decentralized exchange, Ray Pulvear, and former Wavemaker Partners director Roy Learner.
According to a Forbes report on August 27, Framework Labs founders Michael Anderson and Vance Spencer have developed a new investment model called Network Capital that allows investing in DeFi companies at multiple stages.
Unlike venture capital companies, private equity firms and hedge funds that focus on investing in only one stage of development, Framework Labs will invest in different stages and be able to incubate startups, provide liquidity and build new applications based on protocols .
Spencer explained the move towards DeFi, saying that the technology "takes effect on its own and begins to achieve a product market fit to scale, but traditional investors are behind the wheel when it comes to category."
"It's not enough to buy and hold tokens and provide" thought leadership "- DeFi is not an audience sport. Active participation, management, consumer product building and advanced trading strategies are part of the complex process by which the DeFi protocol is successful."
The founders of Framework Labs have become prominent figures in the cryptocurrency space, with their largest investments being made outside of the core teams at Chainlink (LINK) and Synthetix. Prior to founding Framework Ventures in 2019, the pair created and sold Hashletes, an NFT token-issuing company. The company is also a major liquidity provider on the decentralized Uniswap platform.
Framework Labs, a sister company to Framework Ventures, raised $ 8 million in a new seed round.
Station 13, an investment firm focusing on blockchain endeavors related to sports, media, and entertainment, led a fundraiser for Framework Labs. $ 8 million was raised. The framework will use these funds to enlarge its team of researchers, traders and engineers. The company has already hired former CTO and co-founder of the IDEX decentralized exchange, Ray Pulvear, and former Wavemaker Partners director Roy Learner.
According to a Forbes report on August 27, Framework Labs founders Michael Anderson and Vance Spencer have developed a new investment model called Network Capital that allows investing in DeFi companies at multiple stages.
Unlike venture capital companies, private equity firms and hedge funds that focus on investing in only one stage of development, Framework Labs will invest in different stages and be able to incubate startups, provide liquidity and build new applications based on protocols .
Spencer explained the move towards DeFi, saying that the technology "takes effect on its own and begins to achieve a product market fit to scale, but traditional investors are behind the wheel when it comes to category."
"It's not enough to buy and hold tokens and provide" thought leadership "- DeFi is not an audience sport. Active participation, management, consumer product building and advanced trading strategies are part of the complex process by which the DeFi protocol is successful."
The founders of Framework Labs have become prominent figures in the cryptocurrency space, with their largest investments being made outside of the core teams at Chainlink (LINK) and Synthetix. Prior to founding Framework Ventures in 2019, the pair created and sold Hashletes, an NFT token-issuing company. The company is also a major liquidity provider on the decentralized Uniswap platform.
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It is no wonder that they have obtained funding, because the average financial returns on startup investments are higher than those from public stock markets.
Returns on investments for startups are not correlated with those from public markets, so startup valuations do not always fall when the stock market sinks. This is an advantage noticed by investors, ventures, although there is still an opinion in Europe that startup investments are high-risk investments.
A satisfactory proportion of their returns on equity from this "high risk" comes from supporting rare companies that generate above-average returns. Returns on venture capital follow the law of power curve, meaning most returns are generated by just a few firms in the portfolio, much like Pareto's principle of 80% growth, generates 20 percent. selected resources.
According to Cambridge Associates, venture capital returned 11 percent in the US over 20 years. of net income per year, compared with 7.5 percent. in the case of stocks quoted on a stock exchange. This makes sense given the higher risk posed by the relatively low liquidity of such assets, but it is for this reason that investors expect higher returns on capital.
Research by VC Andreessen Horowitz showed that 6% of investments made by American investment funds in 1985-2014 gave 60% of earnings. Funds that did not select startups performed poorly at best.
What's hidden in the average rate of return is the big difference between the best and worst funds in the sample. Looking at American funds that have been investing in startups since 1997, 25 percent. of them gave a high return of 64 percent. annually, while the results of the funds, which bypassed investments in startups, amounted to only 25%, which the US market considered a failure. One more thing, many investors in recent years find the valuation of shares of companies from public markets more and more difficult to justify economically, preferring to move to startups to find fast-growing companies with a large discount in the valuation, even at the price of higher risk.
If you liked my comment and find it wise, please like it, then I will gain the reputation of an expert and the coins that I collect for investment - in my favorite startup, of course.
It is no wonder that they have obtained funding, because the average financial returns on startup investments are higher than those from public stock markets.
Returns on investments for startups are not correlated with those from public markets, so startup valuations do not always fall when the stock market sinks. This is an advantage noticed by investors, ventures, although there is still an opinion in Europe that startup investments are high-risk investments.
A satisfactory proportion of their returns on equity from this "high risk" comes from supporting rare companies that generate above-average returns. Returns on venture capital follow the law of power curve, meaning most returns are generated by just a few firms in the portfolio, much like Pareto's principle of 80% growth, generates 20 percent. selected resources.
According to Cambridge Associates, venture capital returned 11 percent in the US over 20 years. of net income per year, compared with 7.5 percent. in the case of stocks quoted on a stock exchange. This makes sense given the higher risk posed by the relatively low liquidity of such assets, but it is for this reason that investors expect higher returns on capital.
Research by VC Andreessen Horowitz showed that 6% of investments made by American investment funds in 1985-2014 gave 60% of earnings. Funds that did not select startups performed poorly at best.
What's hidden in the average rate of return is the big difference between the best and worst funds in the sample. Looking at American funds that have been investing in startups since 1997, 25 percent. of them gave a high return of 64 percent. annually, while the results of the funds, which bypassed investments in startups, amounted to only 25%, which the US market considered a failure. One more thing, many investors in recent years find the valuation of shares of companies from public markets more and more difficult to justify economically, preferring to move to startups to find fast-growing companies with a large discount in the valuation, even at the price of higher risk.
If you liked my comment and find it wise, please like it, then I will gain the reputation of an expert and the coins that I collect for investment - in my favorite startup, of course.
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