On May 14, Pi Network made waves as they announced the establishment of a $100 million venture capital fund, with the goal of fostering practical applications within their ecosystem.
The announcement unveiled Pi Network Ventures, an investment project modeled on Silicon Valley, which aims to finance startups operating within or compatible with the Pi network. Although this move signifies a significant shift towards wider acceptance, it met with skepticism from investors. This situation could be likened to the “buy the rumor, sell the news” phenomenon as the Pi token experienced a steep decline following the announcement.
As an analyst, I’m focusing my efforts on prioritizing startups within key sectors such as blockchain, fintech, generative artificial intelligence, e-commerce, and social media platforms for our fund.
As an analyst, I’d rephrase the statement as follows: This initiative isn’t solely focused on investment capital; instead, it’s about making Pi a part of everyday scenarios. According to the Foundation, the purpose of this fund is to provide strategic value and long-term impact, while preferentially supporting businesses that can expand Pi’s influence beyond its primary cryptocurrency community.
Despite some positive responses, not everyone has been pleased. Traders, in particular, were disappointed by the lack of immediate effect on Pi’s token value, as it rolled back much of its early May rally. However, from a development standpoint, the project indicates that Pi Network is playing for the long term, laying the groundwork to support builders. In an environment where temporary excitement often reigns supreme, this move points towards a more substantial dedication to lasting growth.
As a passionate crypto investor, I’m eager to delve deeper into what the Pi Network Ventures initiative entails for us developers, users, and the wider community. To gain valuable insights, I turned to an interview with a Pi Network representative on crypto.news. The discussion focused on the fund’s organizational structure, potential projects it may support, and how our collective input will shape the future direction of Pi Network’s development.
crypto.news: Could you clarify the source of the $100 million in funds and provide details on its organizational structure?
The funding for this project will be sourced from the 10% of tokens set aside exclusively for reserve purposes within the foundation, further details about the distribution and economics of Pi can be found here.
CN: Will the funding be provided in fiat, stablecoins, Pi tokens, other cryptos, or a mix of all?
In the context of Pi, both events take place in Pi and monetary transactions are primarily conducted in US Dollars. However, Pi Network Ventures aims to invest mostly in Pi itself. This implies that companies integrating into the ecosystem will receive investments using the same currency they operate with, which is Pi, thereby contributing to its strengthening and growth.
Q: Who is responsible for investment decisions at Pi Network Ventures, and what positions does the Pi Core Team occupy within this organization?
Pi Network Ventures represents a collective investment fund initiated via the Pi Foundation, a non-owned entity that serves as a steering mechanism for the Pi ecosystem’s future growth. Its purpose is to maintain the network’s longevity and promote its sustainability and benefit for future generations.
Could you explain how Pi Network Ventures plans to utilize the $100 million? Is there a specific investment schedule or limit per transaction, or is it a more adaptable, ongoing distribution that will be assigned based on potential opportunities as they become available?
Pi Network Ventures aims to invest in companies that show strong potential for global value creation, offering both financial resources and strategic advantages over an extended period. The goal is also to assist these companies in expanding the use of Pi on a global scale. However, investments by Pi Network Ventures may be made intermittently over time, and they reserve the right to cease investing at any given moment.
Could you explain the differences between Pi Foundation’s investment strategy, if it follows a Venture Capital (VC) model, and the typical approach of traditional venture capital?
Investment opportunities from Pi Network Ventures may provide companies with a unique advantage in both crypto and traditional venture capital: the funding comes with access to a market, which could significantly aid startup development by addressing two critical components. Companies within the portfolio will be granted access to a substantial, active, and KYC-verified userbase of approximately 200 countries and regions, boasting over 19 million identity-verified users through Pi Network’s KYC process.
Question: What are the conditions and steps used by Pi Network Ventures to choose startups for funding? Is it necessary for a project to be constructed solely on the Pi blockchain, or is it enough if Pi is incorporated in some fashion, such as accepting Pi as a form of payment?
Pi Network Ventures emphasizes that they will reveal further details about criteria and processes soon. However, they initially focus on whether a startup or business exhibits innovation and contributes value to the world. Additionally, they consider if there’s a robust team capable of executing this vision. Once these factors are evaluated, they assess whether the business can increase Pi’s functionality and support the ecosystem. More specific requirements will be shared in future updates.
AL: How can we ensure that the $100M will be spent prudently, avoiding investment in projects that may have good intentions but lack feasibility? What measures or knowledge base do we have to guarantee this?
Pi Network Ventures aims to imitate the standard methods used by conventional Silicon Valley venture capital firms when it comes to sourcing, selecting, evaluating, and supporting high-potential and groundbreaking startups and businesses. These practices are designed for discovering and nurturing impactful and disruptive ventures.
The investments made by Pi Network Ventures aim to offer both financial resources and strategic advantages to those deemed capable of generating value globally, while also expanding the use of Pi on a larger scale. It’s important to note that the Pi Foundation isn’t obligated to deploy all $100M in investments; instead, they will consider the caliber of applicants and the number of startups admitted into this initiative. Investments by Pi Network Ventures could be made gradually over time, and they have the flexibility to cease investing at any point should they choose to do so.
CN: Are there any particular sectors or use cases you are prioritizing for investment?
Through Pi Network Ventures, investments will primarily target blockchain startups but will also heavily emphasize technology sectors beyond this, such as generative AI and AI applications, FinTech, embedded payments, ecommerce platforms, marketplaces, social networks, and real-world consumer and enterprise apps. The Pi Foundation aims to explore investment opportunities for companies that can contribute to the Pi ecosystem by driving practical application and progress, whether it’s a global ecommerce platform that accepts Pi, an AI service leveraging Pi for access or credits, or a traditional business integrating Pi into its loyalty program.
What is your take on the goal of Pi Network Ventures, which aims to “enhance the functionality” of Pi. Could you explain how this might be achieved in real-world scenarios?
As more businesses embrace and implement Pi in various everyday scenarios like goods, services, trades, and interactions, users will discover an array of practical applications for it. By incorporating Pi into their operations, businesses are effectively expanding its reach to fresh audiences and use cases. This organic expansion ensures that the usage remains connected to genuine activities and benefits, thereby fostering a robust ecosystem. A thriving ecosystem opens up numerous chances for Pi users to engage – as consumers, developers, laborers, or entrepreneurs.
Will you be providing mentorship, networking, etc?
The mentorship and developer support initiatives have persisted from the Enclosed Network era up until now; for more details, refer to our previous response.
Pi Network Ventures is one method Pi utilizes to enhance its functionality and strengthen the Pi ecosystem. This approach involves high-signal investment and incubation, which focus on a select group of top-tier startups or businesses using specific criteria, as well as grass-roots initiatives that encourage widespread utility development within the community. By employing both strategies, Pi aims to generate numerous attempts at scaling utility. Specifically, Pi Network Ventures falls under the high-signal investment and incubation strategy, while events like hackathons and platforms promoting large-scale utility creation are categorized as grass-roots initiatives.
QN: In what capacity will the Pi network participate in Pi Network Ventures? Could it be possible that the community’s input is taken into account when deciding on which projects receive funding, or even provide an opportunity for users to trial-run products developed by these startups during beta testing phases?
In the history of Pi Network, decision-making regarding developers and projects has been a decentralized process. This has been facilitated through an app called Brainstorm, accessible via the Pi Browser. Here, Pioneers offer their insights on potential projects by participating in multiple blind reviews or assessments within the app. These evaluations aim to eliminate biases and highlight superior projects. Notably, these results have previously contributed to numerous hackathon winners. Regarding the precise incorporation of community feedback into Pi Network Ventures’ project selection, further details will be unveiled in due time.
Question: What role does Pi Network Ventures play in Pi Network’s long-term goals? Can you explain how this venture capital fund might influence Pi’s developmental path, as well as depict a potential image of a fully developed Pi economy if the plans are successful?
With this project, we aim to expand the global production on Pi Network. This involves attracting a wider range of real-world production activities, whether they are apps, transactions, or businesses, to Pi. We plan to do this by investing early in emerging startups and companies that develop these types of production processes.
At this point, a significant stride is being made by Pi, as the debut of Open Network and the activation of external connectivity paves the way for the development of more meaningful applications and practical real-world implementation.
Through investments in startups and companies that develop, incorporate, and advance technologies using Pi, Pi Network Ventures is establishing a foundation for a worldwide, open-source ecosystem. This ecosystem is driven by the community and carries significant economic value, offering practical applications of the network.
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2025-05-21 17:02