encryption and AI company Fraction AI completed a $6 million Pre-Seed financing, with Spartan Group and Symbolic Capital co-leading

PANews December 19th news, according to The Block, Fraction AI, a startup focusing on decentralized encryption and artificial intelligence data annotation, completed a $6 million Pre-Seed financing round. This round of financing was jointly led by Spartan Group and Symbolic Capital, with other investors including Borderless Capital, Anagram, Foresight Ventures, and Karatage. In addition, angel investors such as Sandeep Nailwal, co-founder of Polygon, and Illia Polosukhin, co-founder of NEAR Protocol, also participated and served as advisors. Fraction AI was founded in February 2024 and is committed to reshaping the data annotation process through decentralization, using a hybrid approach that combines human insights with AI agents. The platform mainly consists of three types of participants: stakers who earn rewards by staking ETH or liquidity staking tokens (such as stETH), developers who create AI agents and participate in challenges, and reviewers who participate in evaluations using the native token FRAC (based on the results evaluated by LLM based on specific criteria). Fraction AI plans to launch the mainnet and native token FRAC at the end of the first quarter or the beginning of the second quarter of 2025, and has completed the closed beta test. It is expected to launch the public beta next month, with more than 60,000 test users at this stage. Currently, the company is developing based on Ethereum, and also plans to expand to NEAR and multiple Ethereum Layer 2 networks.