Decentralized Physical Infrastructure Networks (DePIN) are revolutionizing the Web3 and blockchain space by providing practical applications and value for network participants, providers, and investors who are starting to take notice.
FutureMoney Group, an Asia-based venture capital firm established in 2017, specializes in investing in the DePIN industry and artificial intelligence (AI), with assets under management totaling $50 million. The company focuses on both primary and secondary investments in projects of various scales within different ecological niches.
In an interview with Cointelegraph, co-founders of FutureMoney Group, Steven Li and Eo Hao, discuss the current state of the DePIN ecosystem and its potential for growth in the Web3 space.
Cointelegraph: How would you describe the current state of the DePIN ecosystem?
Steven Li: FutureMoney Group has been actively investing in the DePIN sector and has a diverse portfolio. Our goal is to cover different aspects of the DePIN ecosystem to gain a comprehensive understanding of its development.
The DePIN ecosystem can be characterized as follows:
– DePIN serves as a crucial bridge between the traditional world and the expanding Web3 field.
– Compared to other popular tracks, such as the Bitcoin ecosystem, DePIN is more readily accepted by traditional funds and users due to its simplicity.
– There is a significant overlap between DePIN and AI, and these two tracks are likely to merge in the future.
– DePIN is closely intertwined with hardware, with a focus on mobile devices, vehicles, and mining machines.
– The narrative of DePIN revolves around the combination of hardware and token economics. DePINFi and AIFi, with a strong emphasis on staking and the integration of AI, will play a central role in the future.
CT: FutureMoney Group is recognized as the first venture capital firm in Asia to specialize in the DePIN field. The company closed a $20 million fund to invest in DePIN-related products and services. What attracted FutureMoney Group to the DePIN space?
Eo Hao: We chose to focus on DePIN for several reasons. Firstly, we believe that as the Web3 market expands and the Bitcoin ETF gains approval, the need to connect the digital world with the real world becomes more apparent. DePIN serves as an ideal starting point for bridging these two worlds.
Secondly, some of our Limited Partners (LPs) include major hardware manufacturers in the Asian market, such as electric vehicle manufacturers and mining farms listed in the United States. This makes us particularly interested in the blockchain and hardware ecosystems.
CT: Could you share the story of FutureMoney Group and when the company was founded?
Steven Li: Co-founders Eo Hao and I began investing in blockchain and crypto projects in 2016. Apart from Bitcoin and Ether, we also invested in projects like BAT, Loopring, and Qtum. After experiencing the ICO boom in 2017, we started investing in early-stage crypto projects in 2018, raising a total of $1.5 million from family, friends, and personal savings.
Although this initial investment cannot be considered our official first fund, it marked the beginning of our transition from individual investors to a formal company.
CT: What were your initial goals when starting FutureMoney Group, and what are your current goals?
Steven Li: With backgrounds in financial technology, Eo and I were initially drawn to blockchain technology due to its potential to revolutionize the financial system. We established FutureMoney Group with the goal of identifying the next generation of “money” through strategic investments, hence the name of the company.
Over the years, we have expanded our operations from venture capital to a holding company covering various aspects of the crypto field, including asset management, mining, fund of funds, and incubators. In 2021, we officially changed the company name to FutureMoney Group to reflect this growth. Our aim is to continue supporting early-stage startups while providing opportunities for Asian investors to allocate crypto assets.
CT: Where does FutureMoney Group stand today, and could you provide details about your investment practices and portfolio?
Eo Hao: Our current investment theme revolves around the Future of Work. FutureMoney Group is considered one of the most professional investment institutions in the DePIN field, as recognized by Messari and DePIN Buddy. We are also well-known alongside Borderless and Multicoin.
Our expertise is evident in the breadth and depth of our DePIN portfolio, which consists of three products:
1. DePIN Surf focuses on early-stage Alpha projects with low market value. We have reviewed over 50 projects and selected 23 for investment and token issuance.
2. DePIN Index comprises 24 high-quality projects in the industry, including RNDR, TAO, Theta, Nosana, and Mobile. We have invested in all of them, and the overall quarterly revenue has nearly doubled since its establishment in December 2023, reaching 91.9 percent.
3. Additionally, we have made significant market investments in 25 projects, including Powerpod, JDI, GEDONET, and ETHStorage.
CT: What are the most significant milestones FutureMoney Group has achieved so far?
Steven Li: We successfully launched the world’s first DePIN Index and were recognized by Messari as a representative DePIN venture capital firm in Asia. We have also partnered with the IOTEX Foundation for DePIN Surf and collaborated with China Bridge Capital and renowned hardware equipment manufacturers that supply Apple and Tesla.
CT: How do you envision the future of the DePIN space?
Eo Hao: While BTC ecology, DeFi, and Ethereum delve into internal developments within the Web3 industry, DePIN, AI, and RWA (Real-World Assets) contribute to expanding the industry’s breadth.
Both DePIN and AI have immense market potential, and the Bitcoin ecosystem alone presents a trillion-dollar market. However, we strongly believe that DePIN holds significant development potential and wealth opportunities in the real world.
To learn more about FutureMoney Group, visit their website.
Disclaimer: This article is sponsored content. Cointelegraph does not endorse any products or services mentioned in this article. Readers should conduct their own research before making any decisions related to the company, and this article should not be considered investment advice.