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October 9, 2023 16:21 UTC
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October 9, 2023 21:50 UTC
In a bold move amid challenging market conditions, Hong Kong-based venture capital firm CMCC Global has successfully raised $100 million to strengthen Asian blockchain startups through its Titan Fund. The plan comes at a time when global venture capital investment in cryptocurrency companies has plunged 70.9% year-on-year and the number of deals has plunged 54.5%, according to data from PitchBook.
Beacon of Startup Support
The Titan Fund, which closed its first funding round on October 4, includes Block.one, Pacific Century Group led by Hong Kong tycoon Richard Li, Winklevoss Capital, Jebsen Capital, and Animoca Brands founder Yat Siu. The fund will strategically focus its investments on three core areas: blockchain infrastructure, consumer applications (with an emphasis on gaming and non-fungible tokens (NFTs)), and financial services encompassing exchanges, wallets, and lending and borrowing platforms.
Nurturing innovation in Hong Kong
According to CMCC Global’s Baumann, the Titan fund aims to invest in “the world’s best entrepreneurs” despite not having strict mandates on capital allocation to Hong Kong companies. Founded in 2016, the company has a “natural affinity” for Hong Kong, recognizing the city’s significant potential for fintech innovation. Baumann expressed optimism about the city’s future in the Web3 space, saying: “If Hong Kong continues on its path of embracing Web3, we will naturally see more and more entrepreneurs starting companies in that space. And we can become their first capital.”
Navigating Market Downturns and Regulatory Changes
The launch of this fund is particularly noteworthy considering previous events, including the current market downturn and the bankruptcy of the FTX exchange. However, Titan Fund has already conducted five investment rounds, two of which targeted Hong Kong-based startups. Mocaverse, an NFT project from Animoca Brands that raised $20 million in September, and Terminal 3, a Web3 data infrastructure startup.
Hong Kong, once the birthplace of numerous cryptocurrency companies, has experienced a business exodus in recent years due to regulatory uncertainty and strict pandemic restrictions on digital assets. But a significant policy change last October allowing licensed cryptocurrency exchanges to offer services for retail traders signaled the city’s re-embracing of the industry. Despite setbacks such as the collapse of the JPEX exchange, which undermined the confidence of retail investors, crypto companies in the city remain optimistic about their long-term prospects.
A safe harbor for cryptocurrencies in Asia
The launch of a cryptocurrency VC fund in Hong Kong highlights the city’s burgeoning reputation as a safe cryptocurrency harbor, especially considering the regulatory crackdown in the United States. Yen Shiau Sin, managing director of Titan Fund, emphasized that Asian companies are benefiting from the U.S. crackdown on cryptocurrencies because “projects are thinking about talking to us here.”
In conclusion, CMCC Global’s Titan Fund is emerging as a beacon of support for blockchain startups in Asia, especially Hong Kong, by providing critical financial support amid challenging market and regulatory environments. The fund’s focus on blockchain infrastructure, consumer applications and financial services is poised to foster and enhance innovative projects in the blockchain and cryptocurrency space, contributing to the resilience and future growth of the sector.
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Raghav Soni
Raghav is a significant contributor who uses his knowledge, skills and experience for the development and growth of the organization in an efficient and effective manner.
