Daniel Walker
VanEck, a global investment management firm with over $118 billion in assets under management, has made its entry into the venture capital sector with the launch of VanEck Ventures. The new venture fund is targeting $30 million to invest in early-stage startups that operate at the intersection of fintech, digital assets, and artificial intelligence, as announced on Wednesday.
Leading the fund are Wyatt Lonergan and Juan Lopez, two former executives from Circle Ventures who have joined VanEck as general partners. Lonergan, who spent six years at Circle Ventures, left in May, while Lopez departed in July after three years. Since then, theyโve been working behind the scenes to establish VanEck Ventures, develop its investment thesis, and make their first investments.
While VanEck has previously made corporate investments in early-stage companies, this is the firm’s first dedicated venture capital fund. About two and a half years ago, VanEck began investing in liquid cryptocurrency assets, and with this new venture fund, they are extending their strategy to cover both liquid and illiquid crypto investments.
VanEck Ventures Fund I
VanEck is anchoring its first venture capital fund, allowing it to start investing while continuing to raise additional capital. The fund is expected to close later this quarter, according to Lonergan. It will primarily target early-stage startups, focusing on areas like tokenization and stablecoin platforms.
Lopez explained that stablecoins present a significant opportunity, describing them as the “open-source banking-as-a-service layer.” He emphasized the potential for a “fintech explosion” built on stablecoins, noting that regulatory developments around stablecoins could unlock numerous opportunities in payment systems, both on-chain and off-chain.
Lopez also pointed to the $39 trillion cross-border business-to-business payments market as a key area for growth. He believes that blockchain technology, particularly stablecoins on networks like Solana, will help streamline these payments, making near-instant, low-cost transfers the norm within the next five years.
The Fund May Invest in 25 to 35 Projects
VanEck Ventures Fund I plans to make between 25 and 35 investments, with individual investments ranging from $500,000 to $1 million. The fund is open to both equity and token-based projects and has already made four undisclosed investments. Lonergan highlighted that the VanEck Ventures team collaborates closely with the broader VanEck crypto team, which manages various products like ETFs and other liquid assets. Globally, VanEck employs about 400 people.
The launch of VanEck Ventures comes amid a surge in fundraising within the crypto venture capital space. As of August, crypto venture firms have raised over $2.2 billion in new capital this year, according to data from PitchBook.
