The new fund targets fintech, digital assets, and artificial intelligence (AI), aiming to raise $30 million for its initial round. By doing so, VanEck seeks to strengthen its role in early-stage crypto investments. 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. They joined VanEck as general partners earlier this year, marking a strategic pivot for the firm. 

“Since then, we’ve been working in stealth as we set up the VanEck Ventures fund, firm up our thesis and make our first few investments,” Lonergan told The Block. 

The company focus will be on early-stage startups that integrate AI, digital assets, and fintech, aligning with VanEck’s commitment to pioneering crypto innovation.

Although VanEck has previously participated in corporate investments in early-stage ventures, this is its first dedicated venture capital fund. About two and a half years ago, VanEck expanded into liquid asset investments, and now it is enhancing this approach with a fund dedicated to digital transformation opportunities, according to Lonergan. 

VanEck Ventures Eyes $39T Stablecoin Market

With a strong interest in tokenization and stablecoins, VanEck’s new fund aims to tap into the burgeoning opportunities within the crypto payment ecosystem. Lopez emphasized that stablecoins represent one of the most substantial product-market fits today, particularly in the context of cross-border payments. 

“If you’ve ever sent money over a wire, or even tools like PayPal, we can all see the clear benefits,” Lopez explained. The fund intends to target early-stage startups that can bridge on-chain and off-chain payment systems, addressing inefficiencies in existing platforms​.

He highlighted the $39 trillion business-to-business cross-border payments market, pointing out that stablecoins on efficient blockchains like Solana can revolutionize the industry. 

“We believe that as stablecoin regulation broadens, several very exciting opportunities will emerge to make both on-chain and off-chain systems compatible,” said Lopez 

VanEck’s crypto endeavors are not new. The firm was the first to file for a Bitcoin-linked ETF in 2017 and subsequently 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 position as a pioneering entity in the crypto space. 

The focus on digital asset startups is timely, considering the increasing interest and funding in the crypto sector. According to PitchBook data, crypto VCs had already raised $2.2 billion in new capital as of August this year.

VanEck Scales Up With 400 Employees

VanEck’s launch of its $30 million venture capital fund coincides with a broader uptick in the crypto and fintech sectors, making it an opportune moment for the firm. VanEck’s global broad team, consisting of 400 employees, will support Lonergan and Lopez as they navigate this new space, collaborating closely with the existing VanEck crypto team.

The 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 regulation becomes clearer, the fund anticipates an increase in adoption and use cases, which could transform both consumer and business payment systems.