As the number of cryptocurrency and artificial intelligence (AI) startups continues to grow, the demand for funding to support these emerging companies has also increased. VanEck, a New York-based global investment management firm, has announced plans to invest $30 million (roughly Rs. 258 crore) in promising crypto and AI startups. VanEck currently has a market capitalization of $26.9 billion (approximately Rs. 2,25,869 crore).
According to an official statement from VanEck released this week, the early-stage investment fund has been launched under the VanEck Ventures brand.
Commenting on the development, VanEck CEO Jan van Eck noted that the company was a pioneer in recognizing the investment potential of gold in 1968. Today, VanEck sees similar disruptive potential in Bitcoin, the world’s oldest and most valuable cryptocurrency, which is currently trading at $61,094 (approx. 51.2 lakh rupees), according to CoinMarketCap.
“We look forward to supporting the founders of what we believe are some of the busiest companies in fintech – those who are building the future of finance,” noted the company’s head.
The company expects up to 35 investments from the investment fund. The selected startups will get access to funding ranging from $500,000 (roughly Rs. 4.19 crore) to $1 million (roughly Rs. 8.39 crore).
Startups working around tokenized assets, Internet-connected financial markets, and payment systems based on stablecoins have a good chance of getting the necessary funding from VanEck Ventures. In its official statement, the company said that it has already announced investments for four startups from this fund – details of which are yet to be announced.
“As several on-chain utilities focused on programmability and compliance come to market with increasing regulatory clarity, it’s never been a more exciting time to build. Our goal is to be a long-term partner to the bold founders who are defining the next phase of blockchain utility,” said Juan Lopez, General Partner at VanEck Ventures.
As of August 31, 2024, VanEck says it managed roughly $113.9 billion (roughly Rs. 9,56,459 crore) in assets, including mutual funds, ETFs and institutional accounts.
This year, crypto-focused startups reportedly managed to see higher investments from venture capital firms in the second quarter of 2024 compared to the first. In a recent PitchBook report, a total of $2.7 billion (roughly Rs. 22,672 crore) was invested in crypto startups between April and June this year through 503 deals.
In addition to VanEck, other companies backing early-stage Web3 startups include Paradigm, Brevan Howard Asset Management, Framework Ventures, Maven 11, Dragonfly and Haun Ventures.