AI Sector Spotlight: Web3 Infrastructure and Services
This series examines significant artificial intelligence, machine learning, and big data innovations in key sectors of the economy
The rapid adoption of practical artificial intelligence has left few parts of the economy untouched. The potential of AI technology promises to reshape and disrupt the creation of art and media, medicine, law, and other age-old disciplines. In this series, we examine the effects and opportunities of AI integration in key sectors of the economy. Below you’ll find a spotlight on Web3 Infrastructure and services, with examples of investments from our AI Fund portfolio.
Investing in the Future: Explore Our AI Fund
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Reserve Your Spot in AI Fund 4
We are seeing strong interest in this fund as prior AI Fund vintages were oversubscribed, and we’ve had to establish a waitlist to accommodate interest.
If interested, we recommend securing a spot promptly.
Max Accredited Investor Limit: 249
Deadline to Join: March 31, 2024
Web3 Infrastructure and Services
AI holds great potential in Web3 services and blockchain products. For example, AI can enhance security and privacy by enabling advanced encryption algorithms and smart contract auditing, bolstering the trust and integrity of blockchain transactions. Additionally, AI-powered data analysis and machine learning algorithms can provide valuable insights for decentralized applications, improving user experiences and driving efficiency in decentralized finance (DeFi), supply chain management, and decentralized governance.
Integrating AI and blockchain technology opens up new possibilities for autonomous decision-making and predictive analytics. Smart contracts combined with AI algorithms can automate complex processes, facilitate transactions, and optimize resource allocation. AI can also enable decentralized marketplaces with personalized recommendations, fraud detection, and identity verification. As Web3 services evolve, the intersection of AI and blockchain has the potential to transform industries and grant individuals greater control over digital assets and interactions in a secure, transparent, and efficient manner.
Key Sector Data Points:
AI Web3 Infrastructure & Services Companies in AV’s Portfolio
Anything World is an AI-enabled middleware platform that helps developers build interactive 3D experiences for games, images, and video production — at lower costs and speeds 40% faster than alternatives. The platform combines voice computing and 3D rendering with layers of behavioral intelligence.
How We’re Involved: $7.5 million seed round with participation from Acrew Capital and Warner Music Group
Anything World: A Limitless 3D Creator Platform
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Spice AI provides data and infrastructure for Web3 projects. The company is developing Web3 data APIs for applications and machine learning using simple SQL queries for fast data access. Spice is aiming to have a comparable impact on Web3 companies as Snowflake’s data cloud did for the advancement of Web2.
How We’re Involved: $13.5 million seed round led by Madrona Venture Group, with participation from Picus Capital, Founders’ Co-op, TA Ventures Cardinia Ventures, and Elysium Venture Capital
TRM Labs helps government agencies, financial institutions, and businesses detect, investigate, and mitigate crypto-related fraud and financial crime. TRM’s risk management platform includes solutions for cryptocurrency anti-money laundering, transaction monitoring and wallet screening, investigative tracing, and entity risk scoring.
How We’re Involved: $70 million Series B extension led by Thoma Bravo, with participation from Tiger Global Management
AI Fund 3 Open Through August 31
Our AI Fund will invest in a diversified portfolio of ~20-30 companies applying AI, machine learning, big data, and related technologies. The fund will be invested over ~12-18 months with a large reserve (~20-25%) for follow-on opportunities. AI Fund 2 was oversubscribed, and we had to establish a waitlist to accommodate interest. Click below to review fund materials or connect with a Senior Partner to learn more.