Venture capital firms continue to deploy and raise capital for the cryptocurrency markets despite the volatility in recent weeks, and Binance Labs is closing a $500 million investment fund to focus on the adoption of web3 and blockchain technologies.
“We really see the fund as another step forward in terms of how we can build on our mission, which is to facilitate the adoption of web3 technologies at all stages,” said Ken Li, Binance Labs Executive Director of Investments and Mergers and takeovers. tech crunch.
The fund was backed by DST Global Partners and Breyer Capital, as well as family offices and corporations as limited partners, the company said.
Binance Labs is the venture capital and accelerator division of Binance, the global largest crypto exchange by volume. The $500 million fund will be invested in projects in three stages of pre-development or incubation, an early stage venture project and a late growth stage, Li said.
“We would like to partner with and support more founders in more regions and sectors with the foundation, and support them through the wider Binance ecosystem,” Li said. “Ultimately, all cryptocurrency adoption will come from the great founders.”
Since 2018, he has invested in over 170 projects in over 25 countries, including projects such as 1inch, a decentralized finance and exchange aggregator; games for money Axi Infinity; and Sandbox and Polygondecentralized layer 2 scaling platform focused on Ethereum.
The fund also plans to allocate capital to sectors that “haven’t even been identified yet,” Li said.
“We want to be ready to invest in these sectors as they emerge,” Li said. In games and DeFi, for example, adoption can happen fairly quickly. On the consumer side, there is DeFi, gaming, NFT, and the metaverse, but there are still undefined sectors that Binance wants to be ready for.
Its incubator program is web3 focused but comparable to a Web 2.0 accelerator such as Y combinatorLee said. Each program runs in batches or seasons, Li said, and it is currently in its “fourth season,” with 14 projects selected from more than 500 applications.
Lee noted that while capital is a positive thing for founders, it may not be the most important. “Founder support is more important than the capital we bring to market.”
Several crypto funds have been launched recently, including the latest and largest Andreessen Horowitz fund. $4.5 billion mega fundalong with other huge multi-million dollar funds.
Last week, former Binance executives from Old Fashion Research launched $100 million venture fund focus on metaverse and wider adoption of cryptocurrencies in emerging markets such as Latin America and Africa, according to managing partner Ling Zhang, who was previously vice president of M&A and investments at Binance.
While the cryptocurrency markets can be turbulent, more money has been invested in space this year than in 2021.
“We are going to support the founders regardless of market conditions,” Li said.
Approximately $2 billion of capital was raised in May through 164 transactions across the blockchain and crypto ecosystem, according to PitchBook data, with total capital raised this year totaling around $15 billion, up from nearly $12 billion in the same period. in 2021. shows that 2022 is still a favorable year for capital investment in cryptocurrencies, even amid bearish sentiment in the market.
“Ultimately, our point of view is business as usual, and we will continue to partner with founders who have the most ambitious and long-term goals to bring projects to market sustainably,” Li said. “We think this will happen regardless of macro conditions, especially because one of the phases where we are collaborating with founders is very early, so there will always be new projects and new founders who want to enter the space.”
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