Marshall Hayner and Erik Finman, the duo behind Metal Pay, have launched a $1 million venture fund called Metal VC to invest in blockchain startups.
Reported by Coindesk on Thursday, the fund will focus on early-stage ventures working on decentralized financing and will make micro and angel investments. The fund hopes to add 25 to 100 ventures to its portfolio.
To promote Metal Pay, the promoters decided to make all investments in MTL tokens.
“With Metal VC, our vision is simple, if we see something we like and believe in, we will invest and send MTL Coin right then and there,” Hayner told the publication. “We view each investment as a partner to Metal.”
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In addition to the funding, the portfolio companies will also gain access to Metal partners which will help them in global expansion. Metal will also provide advisory services and will provide resources like developers and admins.
Taking bets on small ventures
The fund has already made its debut investment last month with Yellow Card, a Binance-backed startup aiming to bridge the gap between cash and crypto in emerging markets, the report detailed.
With $1 million in the chest, all of which is self-funded by Hayner and Finman, the fund will make investments anywhere between $25,000 to $250,000 in each project.
Founded in 2016, Metal Pay allows its users to transfer money and also rewards them for each transaction. The reward amount is credited in MTL Coins and can go up to 5 percent of the total transaction value.
Meanwhile, UNICEF also launched a crypto fund to support the development of open source technologies for children around the world. Last month, 1confirmation closed its second venture capital fund after raising $45 million, which will also focus on early stage blockchain startups.