VanEck Launches $30 Million Venture Fund for Crypto, AI, and FinTech Startups

VanEck Launches New $30 Million Venture Fund for Crypto and AI Startups

Money keeps pouring into the crypto and artificial intelligence industries, but a new $30 million venture fund from New York City-based investment firm VanEck might be just different enough to turn some heads. On Wednesday, the investment management company launched VanEck Ventures, which will invest in crypto, AI, and fintech startups. The firm plans to invest in up to 35 companies, with the average check ranging between $500,000 and $1 million. Wyatt Lonergan and Juan Lopez, who previously headed Circle Ventures, a funding source for crypto startups, will lead the fund. VanEck has a long history of cashing in on emerging investment opportunities. It launched the first U.S. gold stock fund in 1968, was the first established ETF issuer to file for a Bitcoin-linked ETF, and filed for the first prospective spot Solana ETF in the U.S. So its interest in AI and crypto isn't entirely surprising. The fund has already invested in four startups, VanEck said, though it declined to name which ones. The announcement of this fund comes as there has been growing frustration among startups with venture capitalists who are so focused on startups where AI is the primary focus that they're ignoring opportunities in other fields. "In a way, AI's not hyped enough, but in some senses it's too hyped," Demis Hassabis, co-founder and CEO of Google's AI research lab DeepMind, told the Financial Times.

VanEck launches new $30 million fund to invest in Crypto, AI and FinTech

VanEck, one of the largest investment management firms, has pioneered multiple investment products and trends that have transformed the world of finance, including the first U.S. gold stock fund in 1968. This year, VanEck has ventured into crypto, and is launching a $30 million fund to support early-stage Crypto, AI and FinTech start-ups. The fund is called VanEck Ventures and will be led by Wyatt Lonergan and Juan Lopez. The two are seasoned investors who previously headed Circle Ventures, the venture arm of USDC-issuer Circle. Sticking to their roots, they say their FinTech fund lies at the intersection of crypto and artificial intelligence, with a specific emphasis on stablecoins. "We think stablecoins are what inevitably gets us to sort of this next iteration of really driving down on the initial reason why the industry was so excited about blockchains," Juan Lopez said. "But, it helps us bring it down to the ground in a way that a market participant, whether it's a consumer or business, doesn't need to sacrifice their sort of local currency to get the benefits of what blockchains are delivering today." Lonergan added that he sees stablecoins as the ChatGPT of crypto. The fund is looking for what they describe as product-obsessed founders with "a huge chip on their shoulders from the past" and are looking to solve a problem in the fund's niche category, Lopez said. Lonergan says it is a bullish time for FinTech startups, in part because of Lummis-Gillibrand Payment Stablecoin Act, a bill that seeks to provide a clear regulatory framework for payment stablecoins. Crypto proponents are hoping the bill will be passed during the upcoming lame-duck session in Congress, though others are skeptical. "We think it's going to lead to this kind of Cambrian explosion of FinTech products built on blockchain over the next five to 10 years," Lonergan said. "It's hard to ignore something that's settling $24 trillion a year and yet, most FinTech funds, most venture capital funds, have no exposure to it." VanEck Ventures has already invested in four start-ups, which have yet to be announced. The fund is aiming to make $500,000 to $1 million investments in 25 to 35 companies and plan to make investments over the next four to five years. "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," Jan van Eck, CEO of VanEck, said.

VanEck to Infuse Funding for Early Stage Crypto, AI Businesses

VanEck aims to identify startups that are shaping the future of finance As the number of startups in cryptocurrency and artificial intelligence (AI) continues to grow, the demand for funding to support these emerging firms has also increased. VanEck, a global investment management firm based in New York City, has announced plans to invest $30 million (roughly Rs. 258 crore) into promising crypto and AI startups. Currently, VanEck's market cap stands at $26.9 billion (roughly Rs. 2,25,869 crore). As per an official statement by VanEck released this week, the investment pool for early-age startups has launched under the VanEck Ventures brand. Commenting on the development, VanEck CEO Jan van Eck highlighted that the company was a pioneer in recognising the potential of gold investments in 1968. Today, VanEck sees similar disruptive potential in Bitcoin, the world's oldest and most valuable cryptocurrency, currently trading at $61,094 (around ₹51.2 lakh), according to CoinMarketCap. "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," the company chief noted. The company expects to make up to 35 investments from the investment fund. Selected startups will get access to funding within the range of $500,000 (roughly Rs. 4.19 crore) to $1 million (roughly Rs. 8.39 crore). Startups working around tokenised assets, web-linked financial marketplaces, and stablecoins-based payment systems have a good chance of acquiring required funding from VanEck Ventures. In its official statement, the company said it has already released investments for four startups from this fund - details of which are yet to be announced. "As several on-chain utilities, focused on programmability and compliance, come to market with growing regulatory clarity, it's never been a more exciting time to build. Our goal is to be a long-term partner to bold founders defining the next phase of blockchain utility," said Juan Lopez, General Partner at VanEck Ventures. As of August 31, 2024, VanEck says it managed approximately $113.9 billion (roughly Rs. 9,56,459 crore) in assets, including mutual funds, ETFs and institutional accounts. This year, crypto-focussed startups reportedly managed to see bigger investments from venture capital firms in the second quarter of 2024, compared to the first. In a recently released report by PitchBook, a total of $2.7 billion (roughly Rs. 22,672 crore) was invested into crypto startups between April and June this year via 503 deals. In addition to VanEck, other firms backing early-stage Web3 startups include Paradigm, Brevan Howard Asset Management, Framework Ventures, Maven 11, Dragonfly, and Haun Ventures.

VanEck Launches $30 Million Ventures Fund for Crypto, AI

Asset manager VanEck has launched VanEck Ventures, a $30 million fund investing in early-stage crypto and AI startups, adding to its existing lineup of crypto exchange-traded funds and private funds. The fund is run by Wyatt Lonergan and Juan Lopez, who both joined from Circle Ventures, the venture investing arm of the stablecoin issuer. They will primarily invest in stablecoin-related

VanEck launches $30M ventures fund for crypto and AI

VanEck, one of the issuers of spot Bitcoin exchange-traded funds (ETF) in the United States, is launching a new initiative to support early-stage projects related to cryptocurrency and artificial intelligence. VanEck has launched VanEck Ventures, a $30 million fund investing in fintech, crypto and AI startups in pre-seed and seed stages, the company officially announced on Oct. 9. Among VanEck Ventures' core investment themes, the fund mentioned tokenized assets, internet native financial marketplaces and payments based on stablecoins and tokenized capital markets. Circle Ventures' Wyatt Lonergan and Juan Lopez to lead VanEck's $30 million fund VanEck's new $30 million crypto and AI fund is run by the former head of Circle Ventures, Wyatt Lonergan, and Juan Lopez, who headed Circle Ventures' corporate development and ventures. Launched in late 2021, Circle Ventures is a venture fund by Circle Internet Financial, which operates USD Coin USDC $1.00 , the second largest stablecoin by market capitalization. Related: PayPal, Ernst & Young settle first corporate payment via PYUSD stablecoin At Circle Ventures, Lonergan and Lopez successfully invested more than $50 million in early-stage companies ranging from infrastructure to consumer applications. According to Lonergan, VanEck Ventures's focus on stablecoin projects is relevant as he believes that stablecoins will emerge as an "an open-source banking layer." This is a developing story, and further information will be added as it becomes available. Magazine: Harris' unrealized gains tax could 'tank markets': Nansen's Alex Svanevik, X Hall of Flame

VanEck Launches $30M Early-Stage Fund For Digital Assets, AI Startups

Fund led by former Circle Ventures executives, plans 25-35 investments of $500,000 to $1 million eachю Investment firm VanEck launched a $30 million early-stage fund focused on fintech, digital assets and AI startups. What Happened: The firm announced on Wednesday that the fund, VanEck Ventures, will target pre-seed and seed-stage companies. Jan van Eck, CEO of VanEck and a keynote speaker at Benzinga's Future of Digital Assets event on Nov. 19, emphasized the company's history of recognizing transformative opportunities, stating, "From pioneering an approach to gold investing in 1968 to recognizing the disruptive potential of Bitcoin in 2017, embracing a long-term view on transformative opportunities has always been part of our investment philosophy." VanEck Ventures will be led by Wyatt Lonergan and Juan Lopez, both experienced investors previously heading Circle Ventures, the venture arm of USDC/USD issuer Circle. Their expertise, combined with VanEck's reputation in asset management, positions the fund as a valuable partner for innovative startups. The fund's investment strategy focuses on category-defining founders leveraging emerging technologies like blockchain and large language models. Key investment themes include tokenized assets, internet-native financial marketplaces and next-generation payment systems built on stablecoins and tokenized capital markets. Wyatt Lonergan, General Partner at VanEck Ventures, highlighted three core inflection points shaping their investment thesis: "stablecoins emerging as an open-source banking layer, the commoditization of blockspace and AI breakthroughs." He added that the convergence of these factors is creating "unprecedented opportunities for globally connected, user-centric financial experiences." The fund plans to make 25 to 35 investments, with check sizes ranging from $500,000 to $1 million. It has already made four undisclosed investments. Juan Lopez, also a general partner, noted the exciting timing for blockchain utility, saying, "As several on-chain utilities, focused on programmability and compliance, come to market with growing regulatory clarity, it's never been a more exciting time to build." What's Next: VanEck CEO Jan Van Eck will speak at the upcoming Benzinga Future of Digital Assets event on Nov. 19. Read Next: Maxine Waters Says 'Crypto Is Inevitable,' Other Countries Are 'Way Ahead' Of The United States Image: Shutterstock This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

VanEck Starts Crypto, AI Venture Fund With Former Circle Staff

VanEck, a roughly $115 billion asset manager, is entering the world of venture capital investing with a $30 million early-stage fund that will focus on fintech, digital assets and artificial-intelligence startups. The fund is led by Wyatt Lonergan and Juan Lopez, who previously headed Circle Ventures, which they left earlier this year. There, they invested more than $50 million into more than 100 early-stage companies, Lonergan said in an interview.

VanEck announces venture fund targeting crypto and AI startups: CNBC Crypto World

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Wyatt Lonergan of VanEck Ventures explains why a new fund is targeting early-stage crypto and AI startups.