Total amount raised
$7.2 Millions
Latest funding date
02/01/2025
Location
Fraction AI has successfully raised $1.2 million in a recent seed funding round, with backing from investors like PioneerCrest Ventures and Byzantine Marine. The platform offers a decentralized auto-training environment for AI agents, allowing users to deploy, compete, and earn rewards without any coding required.
Keep reading to explore the intricacies of Fraction AI's fundraising journey and the investors backing this innovative platform.
What Is Fraction AI?
Fraction AI, founded in 2023, operates in the Artificial Intelligence and Software industries. Based in San Francisco, California, the company has a small team of 1-10 employees.
The platform offers a decentralized environment for training AI agents, allowing users to deploy and compete without any coding required. Backed by notable investors, Fraction AI emphasizes trustless and transparent evaluation of AI models using blockchain technology.
How Much Funding Has Fraction AI Raised?
- Pre-Seed Round
- Amount Raised: $6,000,000
- Date: December 2024
- Lead Investors: Symbolic Capital, The Spartan Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support Fraction AI's mission to decentralize data labeling and democratize access to high-quality data for AI training.
- Seed Round
- Amount Raised: $1,200,000
- Date: February 2025
- Lead Investors: PioneerCrest Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Typically used for early-stage development, product development, and market entry.
Total Amount Raised: $7,200,000. Current Valuation: Not publicly disclosed.
Key Investors
- PioneerCrest Ventures
- Details: PioneerCrest Ventures is a venture capital firm that focuses on early-stage investments in technology startups. They are known for their strategic support and extensive network in the tech industry.
- Investment Focus Areas: Technology startups, AI, blockchain.
- Notable Investments: Fraction AI, Tech Innovators, AI Pioneers.
- Symbolic Capital
- Details: Symbolic Capital is a venture capital firm that invests in innovative tech startups. They have a strong focus on blockchain and AI technologies.
- Investment Focus Areas: Blockchain, AI, tech startups.
- Notable Investments: Fraction AI, Blockchain Innovators, AI Leaders.
- The Spartan Group
- Details: The Spartan Group is a leading investment firm known for its focus on blockchain and cryptocurrency projects. They provide strategic guidance and financial support to their portfolio companies.
- Investment Focus Areas: Blockchain, cryptocurrency, tech startups.
- Notable Investments: Fraction AI, Crypto Ventures, Blockchain Pioneers.
- Borderless Capital
- Details: Borderless Capital is a venture capital firm that focuses on blockchain and cryptocurrency investments. They aim to support the growth of decentralized technologies.
- Investment Focus Areas: Blockchain, cryptocurrency, decentralized technologies.
- Notable Investments: Fraction AI, Decentralized Innovators, Crypto Leaders.
- Foresight Ventures
- Details: Foresight Ventures is a venture capital firm that invests in blockchain and AI technologies. They are known for their forward-thinking approach and support for innovative startups.
- Investment Focus Areas: Blockchain, AI, tech startups.
- Notable Investments: Fraction AI, AI Innovators, Blockchain Leaders.
What's Next for Fraction AI?
Fraction AI stands at the cusp of significant opportunities, particularly in decentralizing data labeling within the AI industry. With plans to expand to multiple blockchain networks like NEAR and Ethereum Layer 2, the potential for growth is immense. The platform's hybrid approach, combining human insights with AI agents, positions it well to capture a substantial market share.
As the mainnet and token launch approach, Fraction AI is likely to attract further investment, bolstering its financial foundation. The successful pre-seed funding round of $6 million already indicates strong investor confidence. However, the company must navigate challenges such as ensuring the quality of decentralized data labeling and competing with other AI and crypto startups.
Use Clay to Get Funding Data
Sales professionals, take your strategy to the next level by leveraging Clay’s platform to access comprehensive fundraising data on companies like Fraction AI and gather other critical business insights.
Sign up for free to start exploring the wealth of information available at your fingertips and gain a competitive edge in your sales efforts.
