Venice AI has secured $65 million in a Series A round led by Dragonfly, reaching a $1 billion valuation as the privacy-focused artificial intelligence firm accelerates expansion plans.
The funding round included participation from North Island Ventures, F-Prime, Archetype, Liquid2 Ventures, and Morgan Creek. In return, backers received 8.98% equity, 1.5 million VVV tokens under a vesting schedule, and warrants to buy up to 5 million additional tokens within eight years. If fully exercised, the warrants could raise total proceeds to about $131.5 million.
Funding structure and token implications
The token allocations and warrants are locked for one year before vesting gradually over the following three years. This structure delays any immediate increase in circulating supply, with a potential release of around 6,000 tokens per day after the lock-up period, roughly 0.2% of current daily trading volume.
Venice retained more than 30 million VVV tokens from a total supply exceeding 80 million and chose not to sell them to fund operations. The decision signals an effort to preserve token value while securing capital through equity instead. The company’s holdings now account for over 37.5% of total supply.
The firm also continues to use part of its revenue to repurchase and burn VVV tokens, adding a deflationary element to its model. A separate token, DIEM, can be minted by staking staked-VVV and provides $1 worth of perpetual API credits.
Growth, revenue, and profitability
Venice reported more than 3 million users as of April and an annualized revenue run-rate above $70 million by the end of the first quarter. The company is already profitable, with users generating roughly 1.7 million API calls daily.
These metrics have supported its valuation and drawn attention from traders, especially following the announcement. The VVV token rose أكثر than 17% within an hour, pushing its market capitalization above $680 million, with the price التداول around $14.54.
Expansion plans and product positioning
The company plans to use the new capital to build compute infrastructure, develop a data center, expand into new markets, pursue acquisitions, and grow its workforce.
Founded over two years ago by crypto entrepreneur Voorhees, Venice positions itself as a privacy-first alternative to mainstream AI platforms. It provides access to more than 200 models, including open-source and selected third-party options, while integrating encryption and proxy routing to protect user data. Paid tiers offer end-to-end encryption.
Market context and outlook
Dragonfly’s lead role underscores continued interest in the intersection of blockchain infrastructure and artificial intelligence. The firm’s involvement, alongside other established backers, adds scrutiny and visibility as Venice moves toward broader adoption.
The delayed token release schedule and ongoing buyback program are likely to remain key factors for traders monitoring supply dynamics, particularly as the company scales usage and revenue in parallel with its token ecosystem.
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