TON Foundation Veteran Launches $100 Million VC Fund TVM Ventures

Steve Yun, former president and current board member of the TON Foundation, has officially launched TVM Ventures, a venture capital firm dedicated to fostering innovation within The Open Network (TON) ecosystem. The firm debuts with an inaugural $100 million fund, backed by Yun himself and a Toncoin miner, whose identity and exact contribution remain undisclosed.

Focus on DeFi and PayFi

TVM Ventures derives its name from the TON Virtual Machine and is set to fund startups that align with the foundation’s vision of a robust, decentralized financial ecosystem. The firm is particularly focused on two key verticals: decentralized finance (DeFi) and payment finance (PayFi).

“Regarding DeFi, it will be imperative to build natively on TON, including the smart contract logic written on TVM directly,” Yun stated. “PayFi is cross-chain by nature and therefore more flexible, but 100% must support the TON network.”

TVM Ventures Fund I

Yun, who stepped down as president of the TON Foundation in late 2024, remains an active board member and established TVM Ventures in November 2024. The firm quickly began operations and follows in the footsteps of TON Ventures, another TON-focused VC firm launched last year with a $40 million inaugural fund.

Unlike its predecessor, TVM Ventures has a distinct focus on DeFi and PayFi, seeing TON as the leading blockchain for payments. “Our focus is to build an advanced and comprehensive financial system capable of meeting the financial needs of 500 million users in the next few years,” Yun emphasized.

Backing Early-Stage Startups

TVM Ventures is targeting seed-stage startups with valuations between $5 million and $10 million. The firm takes a leading position with check sizes ranging from $500,000 to $1 million. Additionally, it provides $5 million in "farming liquidity" to ensure projects have the necessary liquidity to function effectively.

While TVM Ventures primarily invests in early-stage startups, it remains open to making strategic investments in larger industry projects if they align with TON’s broader ecosystem growth. The firm invests in both equity and tokens, with plans to deploy its full capital within 24 months.

Already, TVM Ventures has backed four promising TON-based startups:

• Factorial – A Morpho-like modular lending platform on TON.

• Torch Finance – A stablecoin swap platform.

• Fiva – A Pendle-like tokenized yield platform.

• Memes Lab – A memepad on TON/Telegram that enables users to buy memecoins using Telegram Stars.

TON’s Growth Outlook

Although TON’s app ecosystem and total value locked (TVL) have yet to gain significant traction, Yun predicts substantial growth by Q2 2025. He highlights the upcoming launch of the tgBTC bridge and a DeFi incentive initiative from the TON Foundation as catalysts for expansion. Over the next few years, he expects TON to capture a significant share of the stablecoin market, attracting Tron-USDT users within 24 months and ETH-USDT users within 48 months.

Looking ahead three to five years, Yun anticipates TON’s ecosystem will grow exponentially, fueled by Telegram Wallet’s expansion to U.S. users and the TON Foundation’s increasing efficiency in making strategic deals. He believes Toncoin, currently valued at around $4 with a market capitalization of nearly $10 billion, has the potential to surpass $40 in the next bull cycle—representing a 900% increase.

Future Plans and Expansion

TVM Ventures is headquartered in Dubai, and Yun is actively assembling a team of researchers specializing in TVM architecture, on-chain analytics, and TON’s smart contract languages, FunC and Tolk. By investing in both foundational infrastructure and innovative startups, TVM Ventures aims to position TON as the go-to blockchain for decentralized financial services and cross-chain payments.

With a clear vision and substantial capital, TVM Ventures stands as a major force in shaping the future of The Open Network’s financial ecosystem.