New York-based Inversion Labs is taking a private-equity approach to mainstream crypto adoption, raising $26.5m at a $100m valuation with plans to acquire and transform traditional businesses through blockchain technology.
A New Path for Crypto Integration
For years, crypto advocates have argued that mainstream adoption hinged on traditional businesses embracing the technology. Inversion Labs, a startup launched earlier this year, is putting that theory to the test with a strategy modeled on private equity.
Based in New York, the company plans to acquire low-margin businesses, overhaul their systems with blockchain technology, and reap efficiency-driven profits.
The firm has already made waves in the venture capital space, securing a $26.5 million seed round at a $100 million valuation. The funding round was led by Dragonfly Capital, a crypto-focused venture firm, with participation from VanEck, ParaFi Capital, Faction Ventures and Wintermute Ventures.
“Making Crypto Invisible”
Co-founder and Chief Executive Santiago Roel Santos emphasised that the company’s mission is to integrate blockchain seamlessly into traditional industries.
“This technology is powerful, but the reality is crypto doesn’t have that many active users,” he said. “Our North Star is to make crypto invisible to our users. They won’t see how the technology works, but they’ll feel the impact. It’s going to be faster, better and cheaper.”
The capital raised so far will support Inversion’s operations, but acquisitions will be financed separately. According to Santos, the firm plans to raise a minimum of $500 million under a distinct entity called Inversion Capital.
Institutional Interest Rises
Inversion’s model has caught the attention of institutional investors, who see it as a way to gain crypto exposure with lower risk compared to directly holding tokens or investing in digital asset startups.
Cofounder and Chief Operating Officer Suzanne Dannheim explained: “Institutional investors have demonstrated early interest in committing capital to finance Inversion’s acquisitions, in part because their model offers crypto exposure that is less risky than holding coins or investing in crypto businesses.”
Beyond its role as an investor, VanEck will also assist in fundraising and administrative management, according to Dannheim.
South America in Focus
The startup’s first targets are telecommunications companies in South America. Inversion has already submitted several bids in the region. Dannheim highlighted that blockchain could reduce these firms’ data purchasing costs and bring efficiency improvements across operations.
The company is also eyeing payroll service providers, supply-chain businesses and consumer financial service providers as potential acquisition opportunities. The leadership team hopes to close their first deal within a year.
A Roll-Up Strategy Meets Blockchain
Inversion’s approach combines private equity’s classic buy-and-transform strategy with a roll-up model, where multiple acquisitions within a sector are consolidated to create greater value.
This method has already gained popularity in the technology investment sector, particularly with startups leveraging artificial intelligence. Inversion now aims to replicate that success with blockchain, bringing the technology into industries where its benefits may be felt without ever being seen.
