VanEck Launches $30M Fund to Back Next-Generation Crypto and AI Projects

• VanEck has launched a $30 million fund, VanEck Ventures, to support early-stage startups in cryptocurrency, fintech, and AI.
• Led by former Circle Ventures executives Wyatt Lonergan and Juan Lopez, this venture is focusing on tokenized assets, stablecoins, and next-generation financial marketplaces.

VanEck, a force to reckon with in the financial world and among the first issuers of spot Bitcoin ETFs in the U.S., is boldening its stamp in this new asset class, cryptocurrency, with its bold initiative. On October 9, the company announced the launch of VanEck Ventures, a $30 million fund to back early-stage startups in the cryptocurrency, fintech, and artificial intelligence (AI) sectors.

Let’s be honest: crypto is at a crossroads. Obsession with infrastructure investments and token launches has created an imbalance, diverting attention from products that deliver real value to users. Trust has eroded as too many VCs chase short-term gains with unlocks. What’s… https://t.co/hwfiXUhnRV

— VanEck (@vaneck_us) October 9, 2024

While investing in cryptocurrency is inherently risky, this financial giant is prepared to embrace that volatility. In the same vein, VanEck has showcased a great commitment to fostering innovation in this ever-evolving asset class.

This fund, named VanEck Venture is putting its crosshairs on pre-seed and seed-stage startups, providing critical funding at an early stage of their development. Notably, the fund aims to make between 25 and 35 investments with individual investments ranging from $500,000 to $1 million.

Notably, the fund has already made four undisclosed investments, signaling a strong start to its mission of supporting innovation in emerging tech industries.

Circle Ventures Duo to Head VanEck’s $30 Million Fund

Spearheading this fund are two seasoned leaders, Wyatt Lonergan and Juan Lopez, both of whom come from Circle Ventures. Circle Ventures is the venture arm of Circle Internet Financial, the company behind USD Coin (USDC), the second-largest stablecoin by market capitalization. 

Worth mentioning, this is right up their alley, during their time at Circle Ventures, Lonergan and Lopez were instrumental in investing over $50 million in early-stage companies across a wide spectrum, from infrastructure to consumer applications.

VanEck Ventures will put a primary emphasis on Stablecoins which Lonergan termed as an “open-source banking layer.” The $173.40 billion industry has rapidly grown in prominence. This industry has attracted significant backing from prominent figures such as Charles Hoskinson and Vitalik Buterin who highlight the potential of stablecoins as a bridge between traditional finance and the cryptocurrency world. 

Over the past few years, we’ve seen stablecoins enable seamless, large-scale value storage and transfer along with Linux-like composability…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.” Lopez said

Additionally, the fund will emphasize the potential of tokenized assets which digital projects such as Ethereum , Polygon, and Solana are tirelessly working towards. Additionally, internet-native financial marketplaces, are areas that are rapidly gaining traction as blockchain technology continues to transform traditional finance are also of great emphasis. 

VanEck CEO Jan van Eck expressed his enthusiasm for the new venture, noting that the firm has a history of embracing transformative opportunities. “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,” he said. He believes that VanEck Ventures will continue this tradition by supporting what he describes as “some of the most disruptive companies in fintech.”