Venice AI Raises $65 Million Series A at $1 Billion Valuation Led by Dragonfly

According to The Block, Venice AI, a privacy-focused AI platform founded by crypto entrepreneur Erik Voorhees, raised $65 million in a Series A funding round on Wednesday. Dragonfly led the round, with participation from North Island Ventures, Coinbase Ventures, F-Prime, Archetype, Liquid2 Ventures, and Morgan Creek. The round values Venice's equity at $1 billion, Voorhees announced.

Investors received an 8.98% equity stake, a vesting grant of 1.5 million Venice (VVV) tokens, and warrants to purchase 5 million additional VVV tokens over the next eight years at approximately $66.5 million. Venice AI reported 3 million users as of April and achieved profitability with annualized run-rate revenues exceeding $70 million. The company plans to use the capital to build its own compute infrastructure, including its first data center.