New York, NY, USA, October 9th, 2024, Chainwire
VanEck Ventures, a $30 million early-stage fund, focuses on investing in fintech, digital assets, and AI startups in the pre-seed and seed stages. VanEck's strategic expansion into venture capital reflects its long-standing investment philosophy of identifying transformative opportunities early.
VanEck Ventures: Investing in the Future of Finance
VanEck, a leading global investment management firm, announces the launch of VanEck Ventures, a $30 million early-stage fund dedicated to investing in visionary founders operating at the intersection of fintech, digital assets, and artificial intelligence. This launch marks VanEck’s strategic expansion into venture capital, building on its long-established record of identifying and supporting transformative markets.
“From pioneering an approach to gold investing in 1968 to recognizing the disruptive potential of in 2017, embracing a long-term view on transformative opportunities has always been part of our investment philosophy. This fund extends that vision into the early-stage venture space,” said Jan van Eck, CEO of VanEck. “We look forward to supporting founders of what we believe are some of the most disruptive companies in fintech—those building the future of finance.”
VanEck Ventures invests in category-defining founders pushing the boundaries of financial applications and markets leveraging emerging technologies like blockchain and large language models. The fund’s investment philosophy focuses on supporting exceptional teams building at the application layer while maintaining an infrastructure-agnostic approach. The fund's core investment themes include tokenized assets, internet native financial marketplaces, and next-generation payments building on stablecoins and tokenized capital markets.
“Three inflection points core to our investment thesis are starting to reshape the foundation of the internet: stablecoins emerging as an open-source banking layer, the commoditization of blockspace, and AI breakthroughs. The convergence of these is creating unprecedented opportunities for globally connected, user-centric financial experiences, and we are excited to back founders building on these innovations,” said Wyatt Lonergan, General Partner at VanEck Ventures.
About VanEck
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of August 31, 2024, VanEck managed approximately $113.9 billion in assets, including mutual funds, ETFs and institutional accounts.
Analysis: VanEck Ventures' $30 million fund is a strategic move into venture capital, focusing on fintech, digital assets, and AI startups. Their investment philosophy of identifying transformative opportunities early positions them as a valuable partner for innovative startups. With a focus on tokenized assets, internet native financial marketplaces, and next-generation payments, VanEck Ventures aims to support founders at the forefront of financial innovation. This fund offers investors the opportunity to participate in the future of finance through investments in visionary founders and emerging technologies.
Uncover the Risks of Investing in Digital Assets with VanEck Absolute Return Advisers Corporation
VanEck Absolute Return Advisers Corporation (VEARA), the investment manager of the fund, is a member of NFA and is subject to NFA's regulatory oversight and examinations. VEARA has engaged or may engage in underlying or spot virtual currency transactions in the fund. Although NFA has jurisdiction over VEARA, it's important to note that NFA does not have regulatory oversight authority for underlying or spot market virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Given the unique characteristics of these products, including the lack of a centralized pricing source and the opaque nature of the virtual currency market, there is currently no sound or acceptable practice for NFA to adequately verify the ownership and control of a virtual currency or the valuation attributed to a virtual currency by VEARA.
General Digital Asset Risks: Cryptocurrencies and digital assets are not suitable for all investors. Investments in digital assets and Web3 companies are highly speculative and involve a high degree of risk. These risks include technology that is new and untested, intense competition, slow adoption rates, potential product obsolescence, volatility, limited liquidity, cybersecurity risks, lack of regulation, and more. The value of digital assets and Web3 companies can rise or fall dramatically and quickly, with no guarantee of recovery, leading to a significant risk of loss of your entire principal investment.
It's crucial to understand that digital assets are not backed by any government or central bank and are not covered by FDIC or SIPC insurance. Accounts at digital asset custodians and exchanges are not protected by SPIC and are not FDIC insured. Additionally, markets and exchanges for digital assets lack the same controls and customer protections available in traditional investing.
Digital assets encompass cryptocurrencies, tokens, NFTs, assets stored or created using blockchain technology, and other Web3 products. Web3 companies involve the development, innovation, and/or utilization of blockchain, digital assets, or crypto technologies.
In conclusion, investing in digital assets comes with significant risks that may not be suitable for all investors. Understanding the volatility, lack of regulation, and potential for loss is essential before entering this market. It's crucial to conduct thorough research and consult with a financial advisor to make informed investment decisions.