Chorus One alums launch $20 million venture fund targeting pre-seed and seed crypto-AI startups

Frachtis, a new crypto-focused venture fund, has raised $20 million to support pre-seed and seed blockchain startups, according to an announcement on Monday.

"As blockchain technology evolves and crypto goes mainstream, both infra and apps are commoditising," former Chorus One Chief Investment Officer Xavier Meegan, who is joining the effort as general partner, said on X. "We believe the next frontier is to move away from generic blockchains and/or copied applications, towards solving new problems with differentiated technology."

The firm is focused primarily on the intersection of blockchain and artificial intelligence, and will target investments in decentralized infrastructure, middleware, and consumer applications "that make crypto fun, social, or invisible," Meegan said.

Frachtis has already made eight placements, including data availability project Hyve, liquidity distribution protocol Turtle.Club, and the Bless network, among others.

Meegan is joined by several other Chorus One alumni at the new "operator-led fund," including Chorus One CEO Brian Crain and Head of AI Erwin Dassen. Symbiotic Head of Ecosystem Felix Lutsch and GYST founder Mel Tsiaprazis are also joining Frachtis.

"Our experience in operating infrastructure and growing a crypto-native business gives us an edge in sourcing, analysing, selecting, and servicing early-stage investments," Meegan said.

Frachtis's limited partners include Chorus One, cyber•Fund, RockawayX, and Theta Blockchain Ventures.

Chorus One is an institutional staking provider that operates validator nodes and offering staking services for over 60 proof-of-stake networks, including Ethereum, Solana, and Cosmos.