Pi Network made headlines on May 14 when it officially introduced a $100 million venture capital fund aimed at promoting real-world utility for its ecosystem.
The official announcement introducing Pi Network Ventures, a Silicon Valley-style investment initiative that will fund startups building within or integrating with the Pi ecosystem. While this fund represents a bold strategic step towards wider adoption, it has not been warmly received by investors. This could be viewed as the classic 'buy the rumor, sell the news' event since the Pi token plummeted after the reveal.
This fund will prioritize blockchain startups alongside companies in sectors such as financial technology, generative AI, e-commerce, and social platforms.
This initiative is not just about capital investment; it's about integrating Pi into everyday use cases. According to the Fund, the fund is designed to deliver strategic value and long-term impact, prioritizing businesses that can expand Pi's reach beyond its core cryptocurrency community.
However, not all reactions are positive. For traders, the lack of immediate impact of the token is a disappointment, as the price of Pi has erased much of the early May rally. However, from a development perspective, this initiative shows that Pi Network is playing the long game by positioning itself to support builders. In an increasingly saturated ecosystem with short-term hype, this signals a deeper commitment to sustainable growth.
To better understand the implications of Pi Network Ventures for developers, users, and the community at large, crypto.news interviewed a spokesperson for Pi Network to learn about how the fund will be structured, what types of projects are likely to be supported, and how the community will play a role in shaping the next chapter in the development of Pi Network.
CN: Can you explain where the $100 million is coming from and how it is structured?
Pi: The allocation for this initiative comes from the 10% of tokens specifically designated for reserve purposes (more details on Pi supply and tokenomics can be found here).
CN: Will funding be provided in fiat, stablecoin, Pi tokens, other cryptocurrencies, or a combination of all?
Pi: This initiative is organized in Pi and USD. While investments are typically denominated in US dollars, Pi Network Ventures will seek to execute the majority of its investments directly in Pi. This means that companies participating in the ecosystem will receive investments in the very currency that their business [trades in and] will help strengthen and grow.
CN: Who will make investment decisions for Pi Network Ventures, and what role or title will the Pi Core Team hold?
Pi: Pi Network Ventures is an investment fund established through the Pi Foundation, a non-profit organization created to guide the long-term development of the Pi ecosystem and ensure the sustainability and greater benefits of the network for future generations.
CN: How will Pi Network Ventures deploy the $100 million? Is there an investment timeline or limit for each transaction, or will there be more flexible, ad-hoc deployment as opportunities arise?
Pi: Investments from Pi Network Ventures aim to provide both capital and strategic value over a broader timeframe for companies that are believed to be best positioned to create value in the world and seek to help companies provide more ways to use Pi globally. Pi Network Ventures can invest over time and may cease investment at any time.
CN: If the Pi Foundation adopts a VC-style investment approach, how would it differ from traditional venture capital?
Pi: The companies that Pi Network Ventures may invest in will achieve something extremely rare in cryptocurrency and traditional venture capital: funds accompanied by access to markets—capable of addressing two essential components of building startups. Portfolio companies will have the opportunity to access a large, active, and verified KYC user base with tens of millions of Pi Network users across over 200 countries and regions, with more than 19 million users having their identities verified through Pi KYC.
CN: What are the criteria and process for selecting startups to receive funding from Pi Network Ventures? Does a project have to be built exclusively on the Pi blockchain, or is it sufficient to integrate Pi in some way (i.e., accept Pi as a payment method)?
Pi: More details on the criteria and process will be announced later. But the first factor to consider is whether a startup or enterprise is innovative and creates value for the world, and whether there is a strong team to execute that. Then, Pi Network Ventures will assess whether the business can help expand Pi's utility and contribute to the ecosystem. Specific requirements will be included in future announcements.
CN: Are there any expertise or safeguards in place to ensure that the $100 million is allocated wisely and not just given to well-meaning but unfeasible projects?
Pi: The investment process of Pi Network Ventures will seek to reflect general practices used by traditional venture capital firms in Silicon Valley during sourcing, selection, due diligence, etc., designed to identify and support impactful and disruptive startups and businesses.
Please note that the investments of Pi Network Ventures aim to provide both capital and strategic value over a broader timeframe for those believed to be best positioned to create value in the world and help provide more ways to use Pi globally. The Pi Foundation is not obligated to invest the entire $100 million, based on the quality of applicants and the number of startups accepted into the initiative. Pi Network Ventures can invest over time and may cease investment at any time.
CN: Are there specific sectors or use cases you prioritize for investment?
Pi: While native blockchain startups will certainly be part of the portfolio, investments from Pi Network Ventures will also focus heavily on general tech areas, including generative AI and AI applications, FinTech, embedded payments, e-commerce platforms, marketplaces, social media, and real-world consumer and enterprise applications. From a global e-commerce platform accepting Pi, to an AI support service leveraging Pi for access or credit, to a traditional business integrating Pi into its loyalty program—if a company can drive real utility and advancement of the ecosystem, Pi Foundation plans to explore investment opportunities to support that company.
CN: Pi Network Ventures aims to 'increase the utility of Pi.' How do you see that goal manifesting in practice?
Pi: As more businesses accept Pi and integrate Pi into real-world applications—products, services, transactions, and experiences—users will be able to use Pi in more diverse ways. As businesses adopt Pi, they introduce Pi to users and new use cases. This creates natural growth while still keeping usage aligned with real-world operations and utility, building a stronger ecosystem. A stronger ecosystem means more opportunities for Pi users to engage—as users, builders, workers, and entrepreneurs.
Do you provide advisory services, networking, etc.?
Pi: Advisory programs and developer support have continued from the closed network era to the present—see previous answers.
Pi Network Ventures is part of Pi's diverse strategies to promote utility and empower the Pi ecosystem: high-signal investment and incubation operate in parallel with grassroots utility movements and ecosystem initiatives. While high-signal investment and incubation typically target and support a limited number of high-quality startups and enterprises based on selective criteria, grassroots movements can leverage the existing Pi community and potentially create a larger number of efforts for utility at scale. Pi employs both strategies. Pi Network Ventures belongs to the former strategy, while initiatives such as hackathons and any other platforms that scale utility building belong to the latter.
CN: What role will the Pi community play in Pi Network Ventures? For example, will you consider incorporating community feedback into the selection of which products are funded or allow users to beta test products from these startups?
Pi: Pi Network has always had decentralized input in the selection process for developers and projects in the past. This has occurred in the Pi app called Brainstorm, accessible through the Pi Browser, where Pioneers provide their input on projects through multiple ratings or anonymous reviews in the app, helping to filter out noise and yield better projects. Their evaluation results have led to the nominees of many past hackathon winners. For more specific integration of community feedback in the selection process for Pi Network Ventures, stay tuned for future details.
CN: How does Pi Network Ventures align with the long-term vision of Pi Network? How will this venture capital fund shape the future roadmap of Pi, and what will a mature Pi economy look like if the plans are successful?
Pi: This initiative allows for more real-world production activities to be brought into the Pi Network. This initiative aims to bring more real-world production processes, whether in the form of applications, transactions, or companies, into Pi by investing early in startups and companies creating such processes.
This moment marks a significant advancement for Pi—especially as the Open Network has launched and the ability to connect externally has been activated—opening the door for creating greater impactful utility and real-world integration.
By investing in startups and businesses, many of which build, integrate, and innovate with Pi while providing real utility to the network, Pi Network Ventures is laying the groundwork for a globally accessible decentralized ecosystem, community-driven and economically meaningful.
