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Fraction AI

Category: AI Agents

Open infrastructure for autonomous AI agents that research, execute onchain (esp. DeFi), and improve via shared memory and competitive reinforcement learning. Fraction AI was founded in 2023. The company is led by Shashank Yadav. Based in New York, NY, USA. Team size: 8. Total funding raised: $6 million. Latest round: Pre-Seed. Key investors include Spartan Group, Symbolic Capital, Borderless Capital, Anagram, Foresight Ventures, Karatage, PioneerCrest Ventures, Life Extension Ventures, Sandeep Nailwal, Illia Polosukhin.

Founded
2023
Headquarters
New York, NY, USA
Team size
8
Total funding
$6 million

Value proposition

Enables no/low-code autonomous agents with shared memory, reward engines, and RL loops to research and execute onchain actions across DeFi protocols, while also offering expert-driven data labeling for enterprise AI.

Products and solutions

Competitive AI agent platform, Crowdsourced data labeling system, FRAC token ecosystem for incentivization

Unique value

Permissionless multi-agent infra with context-graph continuity and onchain execution so agents research, act across protocols, and improve from every outcome via competitive RL feedback.

Target customer

Builders and users of autonomous onchain/DeFi AI agents; enterprises and AI teams needing domain-specialist labeled training data

Industries served

DeFi / Crypto, Technology, Healthcare, Insurance, Legal, Manufacturing, Real Estate

Technology advantage

Integrates human insights with AI agent competitions to generate and refine training data at scale.

How they differentiate

Combines competitive agent training (RLAF/Spaces) and onchain multi-agent infra (shared memory, rewards) for autonomous DeFi execution, plus expert+agent hybrid labeling—vs centralized labs or pure annotation vendors.

Main competitors

Dataforge, FastLabel

Key partnerships

Polygon (via advisor Sandeep Nailwal), NEAR Protocol (via advisor Illia Polosukhin)

Major milestones

$6M pre-seed (Dec 2024, co-led Spartan/Symbolic), Public testnet v0.1 (Jan 2025), Mainnet live on Base (May 2025) with 320k+ users / 1.1M agents from testnet, Product evolved to open infra for autonomous DeFi/capital-moving agents (2025–2026)

Growth metrics

Mainnet live on Base (May 2025): 320,000+ testnet users, 1.1M agents created, 30M+ data sessions; official site claims 152k+ agents live

Market positioning

Open intelligence layer for autonomous onchain agents (DeFi/capital ops) with competitive self-improvement, alongside enterprise expert-driven AI data labeling.

Geographic focus

Global, with a strong focus on the US market

About Shashank Yadav

IIT Delhi Computer Science graduate. Worked on core machine learning teams at Goldman Sachs and Microsoft, applying AI to quantitative trading in hedge funds. Previously worked at IBM and gained expertise in financial AI systems before founding Fraction AI to democratize AI ownership.

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Official website:

Fraction AI - AI Startup Profile | AI Market Watch