Decentralized Physical Infrastructure Networks (DePIN) are revolutionizing the Web3 and blockchain space by offering practicality and value in the real world, attracting the attention of investors. Asia-based venture capital firm FutureMoney Group, established in 2017, specializes in investing in the DePIN and artificial intelligence (AI) industries, managing assets worth $50 million. The company covers a wide range of investment opportunities in various ecological niches within the DePIN sector.
In an interview with FutureMoney Group co-founders Steven Li and Eo Hao, they provide insights into the current state of the DePIN landscape and its potential for expanding the Web3 space.
Cointelegraph: How do you view the current state of the DePIN ecosystem?
Steven Li: FutureMoney Group has been heavily involved in the DePIN space and has invested in numerous projects. We strive to cover different segments of the DePIN sector to gain a comprehensive understanding of its development.
The DePIN ecosystem has the following key characteristics:
– DePIN represents the extension of the Web3 field into the traditional world, serving as an important starting point and manifestation.
– Compared to other popular tracks like Bitcoin, DePIN is more easily accepted by traditional funds and understood by traditional users.
– DePIN and AI have significant overlap, and there is a growing trend towards merging these tracks.
– DePIN is closely integrated with hardware, with a current focus on mobile terminals, vehicle terminals, and mining machine terminals.
– The narrative of DePIN revolves around the combination of hardware and token economics. With the addition of the AI track and a focus on staking, DePINFi and AIFi will experience explosive growth in the future, with DePIN at its core.
CT: FutureMoney Group is recognized as the first VC in Asia to specialize in the DePIN field, closing a $20 million fund for investing in DePIN-related products and services. What attracted you to the DePIN space?
Eo Hao: We chose DePIN for several reasons. Firstly, we believe that after multiple bull markets and the significant expansion of the Web3 market value, the connection to the real world has become essential, especially with the approval of the Bitcoin ETF. DePIN serves as an excellent starting point that combines these two worlds. Secondly, some of our LPs include major hardware manufacturers in the Asian market, such as electric vehicle manufacturers and US-listed mining farms. This makes us highly attentive to the blockchain and hardware-related aspects in the upstream and downstream sectors.
CT: Can you share the story of FutureMoney Group and when it was established?
SL: Co-founders Eo Hao and I began investing in blockchain and crypto projects in 2016. Apart from buying BTC and ETH, we also invested as individuals in projects like BAT, Loopring, and Qtum. After experiencing the ICO craze in 2017, we started investing in early-stage crypto projects in early 2018. We raised a total of $1.5 million from our family, friends, and personal savings.
Although this amount cannot be considered our official first fund, it marked the transformation from being individual investors to establishing a company.
CT: What was your initial goal when starting FutureMoney Group, and what are your goals now?
SL: With our backgrounds in financial technology, our initial interest in blockchain technology stemmed from the belief that it would revolutionize the financial system. We established this fund with the goal of finding the next generation of “money” through investments, which is why we named the company FutureMoney.
Over the years, we have expanded from being a venture capital business to a holding company in the crypto field, covering asset management, mining, fund of funds, and incubators. In 2021, we officially changed our company name to FutureMoney Group. Our goal now is to continue supporting early-stage startups, deepen our involvement in the crypto field, and provide Asian investors with more opportunities to allocate crypto assets.
CT: Where does FutureMoney Group currently stand? Can you elaborate on your investment practices and portfolio?
EH: Our current investment theme is the Future of Work. As the most professional investment institution in the DePIN field, we have been recognized by Messari and DePIN Buddy as one of the leading VC firms. We are on par with Borderless and Multicoin in terms of reputation.
Our expertise is reflected in the extensive and diverse DePIN portfolio layout. We offer three products:
– DePIN Surf focuses on early-stage Alpha projects with low market value. We have received over 50 project applications and selected a total of 23 in two phases, including projects that have issued tokens.
– DePIN Index covers 24 high-quality projects in the industry, such as RNDR, TAO, Theta, Nosana, and Mobile. We have established positions in all of them, and since its establishment on December 28, 2023, the overall revenue in one quarter has nearly doubled, reaching 91.9%.
– Additionally, we have made major market investments in 25 projects, including Powerpod, JDI, GEDONET, and ETHStorage.
CT: What are the significant milestones you have achieved so far?
SL: We successfully launched the world’s first DePIN Index and were listed by Messari as a representative DePIN VC in Asia in their DePIN mapping.
We have collaborated with the IOTEX Foundation for the DePIN Surf. Additionally, we are working with China Bridge Capital and well-known hardware equipment manufacturers that supply Apple and Tesla.
CT: How do you envision the future of the DePIN space?
EH: While BTC ecology, decentralized finance (DeFi), and Ethereum delve deeper into the Web3 industry, DePIN, AI, and RWA (real-world assets) are expanding its reach. Both DePIN and AI have immense market potential, with the Bitcoin ecosystem already valued at trillions of dollars. However, in the real world, we strongly believe that DePIN has significant potential for development and wealth creation.
Learn more about FutureMoney Group.
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