VanEck is diversifying with the launch of a new venture fund.
The $30 million fund focuses on early-stage startups, with the aim of investing in fintech projects, particularly at the intersection of cryptocurrencies and AI.
“These two components are very similar to horizontal technologies. And I say that because cryptocurrencies are like a value layer where AI can take advantage of financial services that are normally performed by humans. You can express that in code and start automating things,” general partner Wyatt Lonergan told Blockworks.
read more: From crypto ETF to VC: VanEck announces $30 million fund
The fund has made several investments so far, but VanEck is not yet ready to reveal the details. What we do know is that they plan to make up to 35 investments, with check sizes ranging from $500,000 to $1 million.
While the goal is to focus on the early stages (pre-seed and seed), Lonergan doesn't intend to completely close the door on Series A participation if the right project comes along.
read more: How AI discovers a killer app for cryptocurrencies
“We need to be opportunistic. If there's something we missed because we weren't there a year ago, they've spread enough ground that it's attractive. We'll look at it. But we are always price sensitive. When you have a small fund, you have a concentrated fund structure and the idea that you can get your money back multiple times on one investment is very important,” he said. said.
Lonergan and his partner Juan Lopez both come from Circle Ventures. He helped launch Circle Ventures in 2021 before leaving VanEck.
The fund will have an interest in stablecoins, which shouldn't be a huge surprise given Lonergan's past and VanEck's own interests. The company itself does not have a stablecoin, but it has invested in Agora, a stablecoin company led by Nick van Eck, the son of VanEck CEO Jan van Eck.
But it's not just personal interests that are plaguing both Lonergan and his 69-year-old investment management company.
Lonergan said, “At the core are stablecoins, and within that, the underlying blockchain is becoming more or less commoditized, and I think there's enough good technology out there. This is best expressed by [the fact that] You can now access any cryptocurrency wallet or Coinbase to upload and send dollars around the world for free. ”
read more: Are stablecoins a leading indicator of a major bull market?
Lonergan believes now is the right time to start building a framework for startups to thrive in a positive regulatory environment, especially as stablecoins are likely to see regulatory clarity over the next two years. He explained that it was a great time.
Lonergan reasoned that opening the door for fintech companies to use stablecoins is a less obvious use case for cryptocurrencies. For those adopting stablecoins, the cryptocurrency connection may not actually be obvious.
“This is probably not about cryptocurrencies. If you haven’t invested in this category, [and] It may be a strange tagline, but I think it could be such a ChatGPT moment for cryptocurrencies. [stablecoins] is the only technology that enterprises are using at scale, right? AI wasn't obvious until Chat came along,” Lonergan said.
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