VanEck asset management firm launched a $30 million venture fund to support cryptocurrency and artificial intelligence (AI) industries.
It marks the firm’s first venture capital fund, although it has made corporate investments in multiple start-ups and funds in the past.
VanEck Launches Crypto and AI Venture Fund
The fund, VanEck Ventures, will invest in early-stage startups to support the development of the crypto and AI industries. It marks the asset manager’s foray into venture capital, reflecting interest in identifying transformative opportunities early.
“This fund extends our vision into the early-stage venture space. We look forward to supporting founders of what we believe are some of the most disruptive companies in fintech—those building the future of finance,” VanEck CEO Jan van Eck said.
VanEck Ventures will use an investment philosophy that will prioritize teams building at the application layer. It will also maintain an infrastructure-agnostic approach.
Core themes include “tokenized assets, internet native financial marketplaces, and next-generation payments building on stablecoins and tokenized capital markets.” Head of digital assets research at VanEck, Mathew Siegel, clarified that early-stage projects comprise those in “Series A or earlier.”
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Wyatt Lonergan, who previously headed Circle Ventures, will co-lead the fund with Juan Lopez. As general partner, Lonergan hinted at three key areas the fund will explore: stablecoins, tokenization, and AI.
Wyatt Lonergan will co-lead the fund with Juan Lopez after leading Circle Ventures. Lonergan, who is also serving as general partner for the fund, hinted at three avenues the fund would explore: stablecoins, tokenization, and AI.
“Three inflection points core to our investment thesis is starting to reshape the foundation of the internet: stablecoins emerging as an open-source banking layer, the commoditization of blockspace, and AI breakthroughs. The convergence of these is creating unprecedented opportunities for globally connected, user-centric financial experiences, and we are excited to back founders building on these innovations,” said Lonergan.
The fund anticipates 25 to 35 investments, with plunging capital ranging between $500,000 and $1 million. Nevertheless, candidates must show promise for strong strategic and financial upside, with four investments already locked in.
It’s important to highlight that this isn’t VanEck’s first foray into the crypto space. The firm is a prominent player in the ETFs market, offering institutional investors exposure to Bitcoin and Ethereum through its HODL and ETHV products. Additionally, VanEck was a pioneer in filing Solana ETF applications in the US.
Read more: AI in Finance: Top 8 Artificial Intelligence Use Cases for 2024
Overall, the latest development signals VanEck’s intent еo increase the portion of its assets allocated to cryptocurrency. This decision highlights the firm’s leadership in the financial services industry and showcases its forward-looking approach to investing in technologies that have the potential to transform global markets.
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