Venice AI has reached unicorn status after raising $65 million in a Series A round that valued the company at $1 billion. The funding marks the first external capital raise for the privacy-focused AI startup since it launched in May 2024.
The round was led by Dragonfly and included participation from Coinbase Ventures, F-Prime, North Island Ventures, Morgan Creek and other investors. The company said the new capital will support expansion of its infrastructure, customer base and workforce, as well as selective acquisitions.
Founded by Erik Voorhees, Venice AI positions itself as an alternative for users concerned about data exposure in mainstream AI systems. The company says it has 3.5 million users and provides access to more than 200 AI models through a proxy layer designed to limit the amount of user information visible to model providers.
For models from OpenAI, Anthropic, xAI and google , the proxy masks IP addresses, account details and session data. Venice also offers higher-privacy options for some other models, aiming to appeal to users who want more control over how their prompts and metadata are handled.
The fundraising arrives at a time when privacy questions around AI are drawing increased attention. Anthropic recently reduced foreign access to two of its newer AI models, while OpenAI has faced legal scrutiny over allegations involving the sharing of ChatGPT data with third parties. Those developments have helped sharpen investor interest in platforms that promise stronger data protections.
Dragonfly described control over AI delivery as a central issue for the sector’s future, arguing that companies operating the interface between users and models can gain broad visibility into conversations and usage patterns. Venice is trying to differentiate itself by emphasizing privacy and by building more of its own infrastructure rather than relying entirely on rented computing capacity.
Voorhees said the company plans to use the proceeds to expand its data center footprint and own the GPUs that power the platform, which could reduce long-term operating costs. Additional funds will go toward entering new markets, hiring talent and pursuing small acquisitions.
The Venice token rose 6% on Wednesday following the announcement.The US Dollar weakened modestly as markets awaited the June US nonfarm payrolls report, due at 12:30 GMT. The US Dollar Index fell toward 101.35, reflecting caution ahead of a release that could help define the Federal Reserve’s policy path in the months ahead.
Economists expect the US to have added 110,000 jobs in June, down from 172,000 in May. The unemployment rate is forecast to hold at 4.3%. Investors will pay particular attention to average hourly earnings, which are seen rising 3.5% from a year earlier, compared with 3.4% in May. Monthly wage growth is expected to remain steady at 0.3%.
The wage component may matter as much as the headline payroll number because it offers a clearer reading on inflation pressures. Stronger-than-expected earnings could reinforce the view that price growth remains sticky, while a softer reading would support the case for a slower tightening cycle. Market pricing currently suggests that the Fed is highly likely to raise rates at least once this year.
Recent data have already pointed to some cooling in the labor market. The June ADP employment report showed private payroll growth of 98,000, below expectations of 113,000. The ISM manufacturing index also came in weaker than forecast at 53.3, compared with a consensus of 54.0. Together, those figures have encouraged investors to look for signs that economic momentum is easing.
Fed communication has also kept attention on inflation. Policymakers have continued to stress that price pressures remain too elevated, but they have given little guidance on the timing of future rate decisions. That leaves Friday’s labor report, and especially wage data, as a key input for markets assessing whether the central bank still has room to tighten policy further.
