{"id":"inversion-capital","title":"Inversion Capital","content":"**Inversion Capital** is a crypto-focused private equity firm that acquires traditional businesses and integrates blockchain-based financial infrastructure into their core operations. The firm's strategy centers on improving the efficiency and profit margins of its portfolio companies by replacing legacy systems with proprietary on-chain solutions for payments, treasury, and compliance. [\\[1\\]](#cite-id-ixJBvmxg5bduxWUN) \n\n## Overview\n\nInversion Capital operates as a [crypto](https://iq.wiki/wiki/cryptocurrency)-native private equity firm, blending a traditional control-oriented buyout model with a modern technology-driven approach it terms crypto engineering. The firm acquires controlling stakes in established, often low-margin businesses in sectors such as telecommunications and financial services. Following an acquisition, Inversion's in-house technology arm, Inversion Labs, embeds proprietary blockchain infrastructure directly into the company’s operations. This modernization focuses on functions like payments, billing, record-keeping, and treasury management.\n\nThe firm's core thesis is that significant value can be unlocked by replacing inefficient, intermediary-heavy financial systems (like wire and ACH networks) with [stablecoin](https://iq.wiki/wiki/stablecoin)-based payment rails and on-chain workflows. This approach is intended to drive permanent margin expansion and EBITDA growth through operational improvements, rather than through financial engineering, leverage, or token issuance. The firm aims to build a standardized operating layer across its holdings by deploying a common [blockchain](https://iq.wiki/wiki/blockchain) foundation, creating an interoperable ecosystem of portfolio companies.\n\nA key principle of Inversion's model is making the underlying technology invisible to the end-user. Customers of the acquired businesses are intended to experience the benefits of the new infrastructure, such as faster payments or streamlined services, without needing to interact with [crypto wallets](https://iq.wiki/wiki/cryptocurrency-wallet), tokens, or other [blockchain](https://iq.wiki/wiki/blockchain)-specific interfaces. This \"user-agnostic\" strategy aims to accelerate mainstream [blockchain](https://iq.wiki/wiki/blockchain) adoption by mandating its implementation within companies that have established customer bases, with the goal of moving \"real GDP onchain.\" [\\[3\\]](#cite-id-lr3G1vHtDEQmSrAL) [\\[4\\]](#cite-id-F2IhIy6Q1epp3nsh) [\\[8\\]](#cite-id-FQ9TYvNO4IjxkocV) \n\n## Business Model and Strategy\n\nInversion Capital's model is built on acquiring and technologically transforming established businesses. Founder [Santiago Roel Santos](https://iq.wiki/wiki/santiago-roel-santos) stated the firm's philosophy is based on the problem-solving principle of \"Invert, always invert,\" which involves seeking unconventional approaches to shift the advantage in one's favor. [\\[7\\]](#cite-id-Srl3JwnSLQ12pOJj)​\n\n### Acquisition and Investment Strategy\n\nThe firm employs a control-oriented buyout model, acquiring whole companies rather than taking minority investment stakes. This ownership structure allows Inversion to mandate the deep integration of its technology, bypassing the typical challenges of voluntary enterprise adoption.\n\nInversion targets established, cash-generating businesses, particularly in low-margin sectors like telecommunications and financial services, where legacy processes create operational friction. The firm believes these businesses are prime candidates for a business model transformation where even incremental technological efficiencies can lead to significant profit improvement. [\\[2\\]](#cite-id-KqLJLScBU3fOsMWl) [\\[3\\]](#cite-id-lr3G1vHtDEQmSrAL) \n\nThe firm's investment theses include: [\\[6\\]](#cite-id-H1vRUauoHRmQ4OlE) \n\n* **Payment Rails Substitution:** A strategy focused on replacing traditional payment systems with [stablecoin](https://iq.wiki/wiki/stablecoin) rails to achieve what the firm calls a \"one-time infrastructure upgrade with permanent margin improvement.\" The firm identifies this as a market with $100 billion in direct fees.\n* **The Telco-to-Fintech Arbitrage:** A thesis arguing that telecommunications businesses, such as Mobile Virtual Network Operators (MVNOs), are ideal targets for fintech disruption and integration.\n* **The On-chain Credit Flywheel:** A model for using [blockchain](https://iq.wiki/wiki/blockchain) infrastructure to reduce costs in loan origination and servicing, with the firm claiming it can achieve a 93% cost reduction and improve investor yields.\n\n### Value Creation\n\nInversion's primary value-creation lever is operational modernization, which it refers to as \"crypto engineering.\" This is explicitly contrasted with the \"financial engineering\" (e.g., use of leverage) common in traditional private equity. The firm draws a parallel between its approach and the leveraged buyout (LBO) revolution of the 1980s, suggesting that \"crypto engineering\" can similarly transform business operations. The goal is to make businesses \"better, faster, and cheaper\" by embedding [blockchain](https://iq.wiki/wiki/blockchain)-based tools for payments, identity, data integrity, and programmable workflows. [\\[3\\]](#cite-id-lr3G1vHtDEQmSrAL)​\n\n## Technology\n\n### Inversion Labs\n\nInversion Labs is the \"forward deployed\" technical arm of Inversion Capital. Its engineers are embedded directly within acquired portfolio companies to build and deploy proprietary financial infrastructure. The division's work is structured around a four-phase lifecycle designed to manage the technological transition with minimal business disruption.\n\nThe integration lifecycle includes: [\\[8\\]](#cite-id-FQ9TYvNO4IjxkocV) \n\n1. **Assessment (30 Days):** Mapping existing payment flows, identifying inefficiencies, and creating an implementation roadmap with a projected EBITDA impact.\n2. **Infrastructure Build (60 Days):** Deploying [stablecoin](https://iq.wiki/wiki/stablecoin) rails, connecting to the company's ERP and banking systems, and setting up compliance frameworks.\n3. **Migration (30 Days):** A phased migration of payment volumes to the new infrastructure, using parallel processing to ensure business continuity.\n4. **Optimization (Ongoing):** Continuous performance monitoring and system improvements.\n\nInversion Labs' core products include: [\\[8\\]](#cite-id-FQ9TYvNO4IjxkocV) \n\n* **Stablecoin Payment Rails:** A system designed to replace wire and ACH networks. The firm claims it can reduce all-in transaction costs from a baseline of 345 basis points (bps) to between 50 and 100 bps.\n* **Cross-Border Settlement:** Infrastructure that uses [stablecoins](https://iq.wiki/wiki/stablecoin) to achieve near-instant (T+0) settlement, eliminating multi-day waits and correspondent banking intermediaries.\n* **Treasury Optimization:** Tools that allow companies to earn yield on working capital that is \"freed\" due to faster settlement times.\n* **Compliance & Licensing:** Automated [KYC](https://iq.wiki/wiki/know-your-customer-kyc)/[AML](https://iq.wiki/wiki/anti-money-laundering-aml), transaction monitoring, and multi-jurisdiction reporting tools embedded directly into the transaction flow.\n\nIn February 2026, Inversion Labs launched a publicly accessible online calculator to quantify the financial impact of customer churn caused by inefficient payment infrastructure. [\\[7\\]](#cite-id-Srl3JwnSLQ12pOJj)​\n\n### The Inversion L1 on Avalanche\n\nIn February 2025, Inversion announced its intention to build a sovereign [Layer 1](https://iq.wiki/wiki/layer-1) [blockchain](https://iq.wiki/wiki/blockchain), the \"Inversion L1,\" using technology from [Avalanche](https://iq.wiki/wiki/avalanche). This custom [blockchain](https://iq.wiki/wiki/blockchain) is intended to serve as a proprietary \"operating system\" for its entire portfolio of companies, creating a standardized and interoperable foundation. [\\[4\\]](#cite-id-F2IhIy6Q1epp3nsh)​\n\nThe stated reasons for choosing [Avalanche](https://iq.wiki/wiki/avalanche) as a technology partner included:\n\n* **Customization and Permissioning:** The ability to set specific rules at the validator, smart contract, and transaction levels.\n* **Privacy:** Support for wallet and transaction privacy.\n* **EVM Compatibility:** Ease of migrating existing applications and assets.\n* **Interoperability:** Native integration with the broader [Avalanche](https://iq.wiki/wiki/avalanche) ecosystem.\n* **Gas Token Flexibility:** The ability to use a custom native token for gas fees and staking. [\\[4\\]](#cite-id-F2IhIy6Q1epp3nsh)\n\n[YOUTUBE@VID](qlpjW-5kHtw)\n\n## Funding\n\nInversion Capital announced in September 2025 that its technology division, Inversion Labs, had raised $26.5 million in a seed funding round. The round was led by [Dragonfly](https://iq.wiki/wiki/dragonfly), with participation from institutional investors including [HashKey Capital](https://iq.wiki/wiki/hashkey-group), VanEck, [ParaFi Capital](https://iq.wiki/wiki/parafi-capital), Mirana Ventures, and Wintermute, as well as several angel investors. The firm stated the raise was a \"vote of confidence\" in its strategy to push crypto into mainstream adoption through direct ownership and operational integration. The funds were allocated to building out the firm's technology stack and beginning the process of acquiring target businesses. [\\[5\\]](#cite-id-n76DKtCNQww5dR1B) [\\[3\\]](#cite-id-lr3G1vHtDEQmSrAL)​\n\n## Team\n\n* [Santiago Roel Santos](https://iq.wiki/wiki/santiago-roel-santos)\n* Suzanne Dannheim\n* George Calle\n* Giselle Sedano\n* Álvaro Gornés","summary":"Inversion Capital is a crypto-focused private equity firm. 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