Venture capital is becoming increasingly global.
Founders can build from anywhere. Investors can operate across multiple countries. Teams can be distributed from day one.
But moving capital across borders can still be surprisingly complicated.
Banking systems, currencies, payment rails, compliance processes and settlement times were not designed around the way modern startups operate.
At 16VC, we are interested in how new financial infrastructure can make this process simpler.
One area we are exploring is stablecoins, including USDC.
USDC is not a replacement for traditional banking.
It is another financial rail.
And for 16VC, it is an optional one.
16VC and USDC
16VC is an early-stage venture capital firm focused on ambitious founders building the next generation of companies.
We invest from pre-seed through seed across areas including AI, enterprise software, fintech, deep tech and the future of work.
As our investment activity becomes increasingly global, we are exploring infrastructure that can make capital movement more efficient.
USDC is one part of that exploration.
Founders do not need USDC to work with 16VC.
A startup does not need to hold cryptocurrency to receive investment from 16VC.
USDC is simply an additional option where it makes sense and where the appropriate legal, banking and compliance requirements are satisfied.
Why stablecoins are interesting for venture capital
Traditional venture investing often looks like this:
Investor
↓
Bank
↓
International transfer
↓
Currency conversion
↓
Receiving bank
↓
Startup
There can be multiple intermediaries involved.
Different countries can introduce different banking requirements.
Settlement can take time.
Fees can vary.
And the operational process can become increasingly complicated as a venture firm invests across multiple markets.
Stablecoins introduce another model.
For example:
Investor
↓
USDC
↓
Blockchain settlement
↓
Startup or regulated settlement provider
The underlying investment remains the same.
The financial rail is different.
That distinction is important.
USDC isn’t the investment
When people hear “USDC investment,” they can sometimes misunderstand what is actually happening.
The startup investment can still be a traditional venture instrument.
For example:
16VC invests $200,000
↓
Post-Money SAFE
↓
Startup
USDC can simply be the method used to move or settle the investment capital where appropriate.
The SAFE remains the investment agreement.
The startup remains the portfolio company.
The USDC is the settlement rail.
USDC is optional
This is one of the most important points.
16VC does not require founders to use USDC.
A founder does not need:
a crypto wallet
a USDC account
cryptocurrency experience
a blockchain background
to receive an investment from 16VC.
Where traditional USD or other appropriate payment methods are the better option, those can be used.
The objective isn’t to force founders into crypto.
The objective is to give 16VC more infrastructure options as we invest globally.
The wallet becomes part of the infrastructure
Stablecoins also change the way we can think about treasury management.
A traditional company might have:
bank accounts
accounting software
payment platforms
spreadsheets
approval workflows
A modern digital treasury can potentially combine those systems with programmable wallets.
Imagine an investment workflow like this:
Investment approved
↓
SAFE signed
↓
KYC completed
↓
Payment requested
↓
Compliance checks
↓
Finance approval
↓
Treasury approval
↓
USDC transfer
↓
Settlement confirmation
↓
Accounting reconciliation
The important part isn’t the blockchain itself.
It’s the workflow around it.
The goal is to make capital movement more transparent and easier to audit.
We don’t need to build another stablecoin
There is also an important distinction between using stablecoin infrastructure and creating a stablecoin.
16VC does not need to create its own stablecoin simply because we support USDC.
There are already established stablecoin networks and infrastructure providers.
The more interesting opportunity for a venture firm is building the layer above the payment rail.
That layer could include:
investment workflows
treasury
compliance
KYC/KYB
transaction monitoring
investment approvals
portfolio reporting
cap-table records
settlement
accounting
The underlying financial infrastructure can remain specialized.
The venture platform can focus on the investment process.
Compliance comes first
There is no shortcut around compliance.
Using USDC doesn’t remove:
KYC
AML requirements
sanctions screening
source-of-funds checks
transaction monitoring
tax requirements
securities laws
corporate governance
investment documentation
If anything, global digital financial infrastructure makes good compliance systems more important.
A serious venture platform needs to know:
Where did the money come from?
Who controls the wallet?
Who approved the transaction?
Where did the money go?
Which investment did it relate to?
When did it settle?
Can the transaction be reconciled with the company’s accounting records?
Those questions should have clear answers.
The future of venture infrastructure
The bigger idea isn’t simply “VCs should use crypto.”
That is too narrow.
The bigger idea is that venture capital itself can become more software-driven.
Imagine an investment platform where the entire lifecycle exists in one system:
Deal
↓
Diligence
↓
Investment committee
↓
Legal
↓
SAFE
↓
KYC/KYB
↓
Funding
↓
Settlement
↓
Portfolio
↓
Reporting
Instead of information being spread across emails, spreadsheets, PDFs and different financial systems, the investment could have a single digital record.
That creates a better operating system for venture capital.
What about SPVs?
Stablecoins also become interesting when combined with investment vehicles such as SPVs.
A future workflow could look something like:
Investors
↓
Investment SPV
↓
Startup
↓
SAFE / Equity
The infrastructure could manage:
investor onboarding
KYC
documentation
capital collection
investment execution
settlement
portfolio records
reporting
But an SPV isn’t a shortcut around regulation.
The legal and regulatory structure still matters.
The technology should support the legal structure, not attempt to replace it.
Security becomes critical
Moving capital digitally creates another responsibility: security.
If a venture firm manages significant treasury balances, no individual employee should have unrestricted control over the entire treasury.
Institutional infrastructure should include controls such as:
multi-party approvals
role-based access
transaction limits
wallet policies
secure key management
withdrawal controls
transaction monitoring
audit trails
incident response
The objective is simple:
No single point of failure.
A $200,000 investment should not depend on one person’s laptop or one private key.
Why this matters for founders
Ultimately, founders shouldn’t have to care about the underlying infrastructure.
A founder should be focused on:
building the company.
Not:
figuring out international settlement
chasing payment confirmations
managing multiple currencies
understanding wallet infrastructure
navigating complicated investment operations
If the infrastructure works well, the founder should simply see:
Investment approved.
SAFE signed.
Funds received.
That’s the experience we want to move toward.
Global venture capital needs global infrastructure
The next generation of startups will increasingly be global from day one.
A company can have:
a founder in India
engineers in Eastern Europe
customers in the United States
a UK investor
contractors across multiple countries
Capital needs to move through that same global environment.
Traditional financial infrastructure will continue to play a major role.
But stablecoins can provide another option.
That is why we are paying attention.
We’re early
We don’t think every venture investment should use USDC.
We don’t think blockchain automatically makes financial infrastructure better.
And we don’t think founders should be forced to use crypto.
The technology needs to solve a real problem.
For us, the interesting problems are:
How do we move capital globally?
How do we settle investments faster?
How do we make compliance more systematic?
How do we make investment operations easier to audit?
How do we give founders a better experience?
Those are the questions worth exploring.
What we’re building toward at 16VC
Our long-term interest is not simply in holding USDC.
It is in building better venture infrastructure.
That means thinking about:
Venture × Treasury × Stablecoins × Wallets × Compliance × Software
The technology underneath can change.
The principle doesn’t.
Make investing easier.
Make capital movement more transparent.
Make compliance stronger.
Make the founder experience simpler.
And give investors better infrastructure to support companies globally.
Frequently Asked Questions
Does 16VC support USDC?
Yes. 16VC supports USDC as an optional investment and settlement route where appropriate.
Do founders need USDC to receive investment from 16VC?
No.
USDC is optional. Founders can work with 16VC without holding cryptocurrency or using a crypto wallet.
Is USDC the investment?
No.
USDC can be used as a settlement or treasury rail. The underlying investment can still be structured through a traditional venture instrument such as a SAFE.
Why is 16VC interested in stablecoins?
Global venture investing can involve multiple currencies, banking systems and settlement processes. Stablecoins such as USDC provide another potential way to move capital globally.
Is 16VC creating its own stablecoin?
No. The focus is on exploring existing stablecoin infrastructure and how it can support venture investment operations.
Does using USDC remove regulatory requirements?
No.
Using USDC does not remove applicable legal, tax, AML, KYC, securities or regulatory requirements. The appropriate structure depends on the specific activity and jurisdiction.
Who is Sridhar Arunagiri?
Sridhar Arunagiri is the Founder and General Partner of 16VC, an early-stage venture capital firm backing ambitious founders from pre-seed through seed.
The future isn’t crypto versus traditional finance
That’s the wrong framing.
The future is likely to be a combination of different financial rails.
Banks will continue to matter.
Traditional investment structures will continue to matter.
Legal agreements will continue to matter.
And stablecoins can become another piece of the infrastructure.
At 16VC, we’re interested in what happens when those systems work together.
Because the ultimate goal isn’t to make venture capital more complicated.
It’s to make it invisible to the founder.
The founder should build.
The investor should invest.
And the infrastructure should quietly make everything in between work.
That’s the future of venture infrastructure we’re interested in exploring at 16VC.
About 16VC
16VC is an early-stage venture capital firm backing ambitious founders from pre-seed through seed. The firm invests across AI, enterprise software, fintech, deep tech and the future of work.
16VC supports USDC as an optional investment and settlement route. USDC is not required for founders to work with 16VC.
Sridhar Arunagiri is the Founder and General Partner of 16VC.