VanEck, a global investment firm with more than $118 billion in assets under management, is moving into venture capital with the launch of VanEck Ventures.
The new fund will target fintech, digital assets and artificial intelligence (AI) and aims to raise $30 million in its first round. In doing so, VanEck seeks to strengthen its role in early-stage crypto investing. This initiative builds on the company’s previous expansion into liquid asset investments, now adding both liquid and illiquid crypto ventures to its portfolio.
Wyatt Lonergan and Juan Lopez, formerly of Circle Ventures, will lead the fund. The two companies joined VanEck as general partners earlier this year, marking a strategic turning point for the company.
“Since then, we have been working quietly to establish the VanEck Ventures fund, solidify our theory, and make our first few investments,” Lonergan told The Block.
The company will focus on early-stage startups that integrate AI, digital assets, and fintech, in line with VanEck’s commitment to pioneering cryptographic innovation.
While VanEck has participated in corporate investments in early-stage venture companies in the past, this is its first dedicated venture capital fund. About two-and-a-half years ago, VanEck expanded into liquid asset investing, Lonergan said, and is now enhancing this approach with the creation of a fund focused on digital transformation opportunities.
VanEck Ventures focuses on $39 trillion stablecoin market
With a strong interest in tokenization and stablecoins, VanEck’s new fund aims to capitalize on burgeoning opportunities within the cryptocurrency payments ecosystem. Mr. Lopez emphasized that stablecoins have one of the most substantial product-market fits today, especially in the context of cross-border payments.
“Anyone who has ever sent money using a wire transfer or a tool like PayPal can see the obvious benefits,” Lopez explained. The fund will target early-stage startups that can bridge on-chain and off-chain payment systems and address inefficiencies in existing platforms.
He highlighted the $39 trillion international business-to-business payments market and pointed out that efficient blockchain-based stablecoins like Solana could revolutionize the industry.
“As stablecoin regulation expands, we believe that some very exciting opportunities will emerge to make both on-chain and off-chain systems compatible,” Lopez said. said.
VanEck’s focus on cryptocurrencies is not new. The company first applied for a Bitcoin-linked ETF in 2017, then sought approval for a Spot Bitcoin ETF in 2018 and a Spot Ether ETF in 2021. Both ETFs received approval earlier this year, reinforcing VanEck’s pioneering position. crypto space.
The focus on digital asset startups is timely given the increasing interest and funding in the cryptocurrency sector. Cryptocurrency VCs have already raised $2.2 billion in new funding as of August of this year, according to PitchBook data.
VanEck scales up to 400 employees
The launch of VanEck’s $30 million venture capital fund coincides with a broader rise in the crypto and fintech space, making it perfect timing for the company. VanEck’s global and expansive team of 400 employees will support Lonergan and Lopez as they navigate this new territory, working closely with the existing VanEck crypto team.
VanEck Ventures Fund I has already made four unannounced investments and plans to further capitalize on the growth of tokenization and stablecoin platforms. As stablecoin regulations become clearer, the fund expects increased adoption and use cases, which could transform payment systems for both consumers and businesses.
