'Teenage Bitcoin Millionaire' Co-Founds $1 Million Investment Fund for Crypto Startups

Erik Finman's $1 million fund will make seed-level investments in startups dealing in banking and decentralized finance.

AccessTimeIconOct 10, 2019 at 11:00 p.m. UTC
Updated Sep 13, 2021 at 11:33 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The leaders of crypto payment app Metal Pay, Marshall Hayner and Erik Finman, are launching an investment fund.

Dubbed Metal VC, the $1 million dollar fund will focus on micro and angel investments, primarily in early-stage companies involved in banking and decentralized finance. The fund will allow the startup to align with partners as it expands globally, according to Metal CEO Hayner.

The Metal subsidiary closed its first deal last month, with an undisclosed stake in the Binance-backed startup Yellow Card, which provides a cash-to-crypto on-ramp for emerging markets.

A week after the deal, Finman told CoinDesk he may be close to closing on another startup. This time, an app created by a YouTuber to compete against the video hosting giant that features an in-app currency that could be converted into crypto.

“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 said, adding:

"We view each investment as a partner to Metal."

Though the amount of time spent advising each firm will vary, Metal is willing to contribute resources including developers or admins depending on a startup's needs, according to Finman.

The fund is looking to invest seed funding in anywhere between 25 to 100 startups at various stages of development. With an eye towards leading the round “when we can,” Finman said. Metal VC will stake anywhere between a minimum of $25,000 and a maximum of $250,000 in each project.

The fund is self-funded by Finman and Hayner, without outside contributions.

As “the VC fund for misfits,” Finman said he and Hayner are considering company metrics that traditional investment funds may ignore, such as an engaged Discord channel. A founder’s personal quirks also play to Finman’s ear, citing the “super young” and ambitious, or leaders of hacking collectives. Said Finman:

“The more of a misfit, the better job you can have in pitching me."

Funding photo via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.