VVV Crypto Price Jumps +9% After Venice Secures $65M Investment at $1B Valuation

Venice AI, a leading privacy-focused artificial intelligence platform backed by crypto entrepreneur Erik Voorhees, has secured $65 million from a Series A funding round. With this investment, the company has officially achieved a unicorn status, reaching a valuation of a staggering $1 billion. 

This funding marks a big milestone for Venice AI as it seeks to expand its AI platform. The investment also signifies the increasing need for AI platforms that prioritize user privacy as demand for alternatives to traditional AI chatbots rises.

Venice AI hits $1B valuation after Series A funding

In a Series A funding round, Venice AI has secured $65 million. This is the company’s very first round of external financing. With a billion-dollar valuation, the company has attained a unicorn status. Dragonfly led the funding, and other participants like Coinbase Ventures, North Island Ventures, Archetype, Liquid2 Ventures, Morgan Creek, and more.

It is important to mention that Venice AI is a privacy-focused artificial intelligence firm. In May 2024, Erik Voorhees founded the platform to provide users with greater control over their data. By not storing any conversations on centralized servers, the platform gives users a more secure alternative to traditional AI chatbots.

On July 1, Voorhees announced the funding round on X. According to his him, the funding supports the company’s vision of building a private and less restrictive platform. He considers the project an alternative to mainstream AI platforms like ChatGPT. The founder noted:

How is the funding structured?

As per Voorhees’ statement, the funding round offers investors an 8.98% equity stake in Venice AI. This makes investors the shareholders of the company. In addition, they will also receive a vesting grant of 1.5 million VVV tokens.

Moreover, the deal also includes warrants allowing investors to buy another 5 million VVV tokens during the next eight years. If investors exercise these warrants fully, Venice AI could raise an additional $66.5 million. Following this second round, the total value of the funding package could rise to $131 million.

VVV token rises 9% on the announcement

In response to Venice AI’s $65 million funding, the platform’s native VVV token took a sharp positive turn. The token surged to a weekly high of nearly $15, marking a significant rise of about 9%.

As of press time, VVV is trading at $13.35, with a notable 9% daily uptick. The trading volume has also seen a massive increase of around 250%, hitting $83 million. This indicates that the community is largely engaging with the token, driven by its current positive trend.

Another important update is the company’s decision to reduce the annual issuance of the VVV token. The company announced that the issuance has been reduced to 3 million per year. These tokens will be distributed to users as rewards for staking their tokens.