As the number of startups in cryptocurrencies and artificial intelligence (AI) continues to grow, the demand for funds to support these emerging companies has also increased. Vaneck, a global investment management company based in New York City, has announced plans to invest $30 million (approximately Rs 25.8 billion) in promising cryptocurrency and AI startups. Currently, Vaneck has a market capitalization of US$26.9 billion (approximately Rs 225,869 crore).
According to an official statement released by Vaneck this week, an investment pool for early-stage startups has been launched under the Vaneck Ventures brand.
Commenting on the development, Vaneck CEO Jan van Eck stressed that the company was a pioneer in recognizing the potential of gold investment in 1968. Today, Vaneck sees similar destructive potential for Bitcoin, the oldest and most valuable cryptocurrency in the world, with current transactions currently at $61,094 ($61,094 (according to CoinMarketCap, about Rs 5.12 lakh).
“We look forward to supporting some of the most disruptive companies we consider to be in fintech-building the future of finance,” the company chief noted.
The company is expected to receive up to 35 investments from investment funds. Selected startups will receive funding in the range of US$500,000 (about Rs 419 crore) to US$1 million (about Rs 839 crore).
Startups surrounding token assets, network-linked financial markets and Stablecoins-based payment systems are likely to get the funds needed from Vaneck Ventures. The company said in its official statement that it has released investments in four startups of the fund – details have not been announced yet.
“With several on-chain utilities focused on programmability and compliance, this has never been a more exciting time as regulation becomes clearer. Our goal is to be a defining block. Long-term partner of the bold founder of the next stage of Chain Utility,” said Juan Lopez, general partner of Vaneck Ventures.
As of August 31, 2024, Vaneck said it managed approximately US$113.9 billion (approximately Rs 956.45.9 crore) of assets, including mutual funds, ETFs and institutional accounts.
This year, crypto-focused startups have managed to get bigger investments from venture capital firms in the second quarter of 2024. In a recent report released by PitchBook, between April and June this year, US$2.7 billion (approximately Rs 226,720 crore) was invested through 503 transactions.
In addition to Vaneck, other companies supporting early Web3 startups include Paradigm, Brevan Howard Asset Management, Framework Ventures, Maven 11, Dragonfly, and Haun Ventures.
