Digital Currency Group (DCG) subsidiary Luno is launching an investment plan to fund up to 200-300 fintech and crypto startup companies per year.
The investment fund looks to continue DCG’s seven year experience of funding in web3 and crypto firms as Luno aims to ‘diversify beyond crypto into the broader fintech space’.
The investment plan will take a “localised” approach, as Luno believes it can use its expertise in the industry to reach early-stage businesses across the globe.
CEO at Luno, Jocelyn Cheng, leads an all female group as the venture capitalist company will continue to invest in digital assets and later-stage companies, as it did prior for DCG before the aforementioned investment plan.
“There are very few truly global and very early-stage fintech funds in the world; we see an exciting opportunity here to build one,” said Cheng.
“The reason why it’s not just pure crypto is that over the past few years, as operators scaling some of the largest crypto businesses in the world, we have noticed that there is such a strong intersection between some of the traditional fintechs and crypto.”
Luno’s commitment in backing fintech and crypto startups is a project trend that has only accelerated in the past few years.
According to techcrunch, investment fund firms Paradigm and Andreessen Horowitz have launched huge funds of $2.2 billion and $3 billion respectively, with the sole interest of providing solutions for those startups.
In addition, Crypto.com, HackVC and Electric Capital have all begun their investment endeavours for similar companies.
Cheng added: “There are very few truly global and very early-stage fintech funds in the world; we see an exciting opportunity here to build one.
“The reason why it’s not just pure crypto is that over the past few years, as operators scaling some of the largest crypto businesses in the world, we have noticed that there is such a strong intersection between some of the traditional fintechs and crypto,” said Cheng.”
Luno’s strengthening of its investment within digital currency and fintech will be seen as a significantly positive moment for both sectors, as they benefit from the accelerated growth of the firm and the undeniable importance of early-stage fintech funds.
