- October 6, 2023
- Posted by: [email protected]
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CMCC Global, a Hong Kong-based venture capital (VC) firm specializing in cryptocurrencies, has established a $100 million fund, known as the “Titan Fund,” to provide support to bolster blockchain startups across Asia. This crypto-focused fund recently concluded its first funding round on October 4th, attracting investments from 30 prominent backers, including blockchain giant Block.one, Hong Kong tycoon Richard Li’s Pacific Century Group, Winklevoss Capital, Jebsen Capital, and Animoca Brands founder Yat Siu, as reported by the South China Morning Post.
The Titan Fund has already initiated investments in five distinct blockchain startups, with a particular focus on Hong Kong-based projects. The fund’s core investment areas encompass vital segments of the blockchain ecosystem, including blockchain infrastructure, consumer-oriented applications like gaming and nonfungible tokens (NFTs), as well as financial services such as cryptocurrency exchanges, digital wallets, and lending and borrowing platforms.
This latest crypto fund offering from CMCC Global marks its fourth fund dedicated to providing equity investments to early-stage blockchain startups, with a significant emphasis on Hong Kong’s burgeoning blockchain landscape. Among its recent investments are two promising Hong Kong-based ventures. The first is Mocaverse, an NFT project launched by Animoca Brands in December 2022, which successfully raised $20 million in September. The second is Terminal 3, a Web3 data infrastructure startup.
The establishment of the $100 million Titan Fund arrives at a time when the crypto funding landscape has experienced a notable downturn amid the bear market and the aftermath of the FTX exchange collapse. According to data from Pitchbook, global venture capital investments in crypto companies saw a staggering 70.9% year-on-year decline in value, coupled with a 55% reduction in the number of deals. This stands in stark contrast to the bullish era when crypto startups regularly secured billions in funding, leading to the emergence of new unicorns almost every month.
The launch of this crypto VC fund in Hong Kong underscores the city’s rising prominence as a secure haven for crypto-related activities. Titan Fund’s managing director, Yen Shiau Sin, pointed out that a clampdown on cryptocurrencies in the United States has prompted many blockchain projects to consider relocating to Hong Kong for a more conducive environment.
Hong Kong launched a significant shift in its crypto policy in October 2022, with the government signaling its intent to foster a regulatory framework that encourages Web3 technologies. Regulators doubled down on this policy shift, crafting pro-crypto regulations that pave the way for regulated crypto exchanges and extend services to retail customers. This proactive stance has further solidified Hong Kong’s position as an attractive destination for crypto ventures in the Asian region.
