VanEck Ventures Launches

VanEck, a global investment management giant managing over $118 billion in assets, has entered the venture capital arena with the launch of VanEck Ventures.

Fund Overview

VanEck Ventures aims to raise $30 million for its inaugural fund, investing in early-stage startups at the intersection of fintech, digital assets, and artificial intelligence. The fund will be led by Wyatt Lonergan and Juan Lopez, former leaders at Circle Ventures.

Lonergan left Circle Ventures in May after six years, and Lopez departed in July after three years. Lonergan stated they had been working stealthily to establish the fund and develop their investment thesis since then.

VanEck has made corporate investments in various early-stage companies and funds previously, but this is its first dedicated venture capital fund.

Strategic Expansion

Approximately two and a half years ago, VanEck expanded into liquid asset investing and is now enhancing its strategy with a dedicated venture fund that includes both liquid and illiquid crypto investments. VanEck has been an early pioneer in the crypto sector, filing for the first bitcoin-linked ETF in 2017, among other milestones.

VanEck Ventures Fund I

The VanEck Ventures Fund I is currently anchored by VanEck, allowing it to start investing while continuing to raise additional capital. The fund targets early-stage startups, focusing on tokenization and stablecoin platforms. Lopez emphasized the potential of stablecoins in achieving broader adoption of payment systems.

The fund plans to make between 25 and 35 investments, with individual investments ranging from $500,000 to $1 million. Lonergan noted it's open to both equity and token projects and has already made four undisclosed investments.

The VanEck Ventures team collaborates closely with VanEck's broader crypto team, which manages ETFs and other business lines, as the firm leverages its resources.

Market Context

VanEck's venture capital move comes amid a wave of fundraising in the crypto VC sector, with firms raising over $2.2 billion in new capital through closed funds as of August.

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