Hong Kong-based venture capital firm CMCC Global has successfully raised $100 million to support Asian blockchain startups. The firm’s crypto fund, Titan Fund, concluded its inaugural funding round on October 4th, with the participation of 30 investors, including blockchain company Block.one, Richard Li’s Pacific Century Group, Winklevoss Capital, Jebsen Capital, and Animoca Brands founder Yat Siu, among others. This news was reported by the South China Morning Post.
The Titan Fund will primarily focus on investments in three key areas: blockchain infrastructure, consumer applications such as gaming and nonfungible tokens (NFTs), and financial services including exchanges, wallets, and lending and borrowing platforms. This latest venture fund from CMCC Global is its fourth to offer equity investments to early-stage blockchain startups specifically targeting the Hong Kong market. So far, the fund has carried out five investment rounds, with two of them being allocated to Hong Kong-based startups.
Among the Hong Kong startups that have received investments from Titan Fund are Mocaverse, an NFT project launched in December 2022 by Hong Kong blockchain firm Animoca Brands, which raised $20 million in September, and Terminal 3, a Web3 data infrastructure startup.
This $100 million venture fund comes at a time when crypto funding has been scarce due to the bear market and the collapse of FTX. According to data from Pitchbook, global venture capital investments in crypto firms have decreased by 70.9% YoY, while the number of deals dropped by 55%. This is a sharp contrast to the bull market period, when crypto-based startups were able to secure billions of dollars in funding, with new unicorns emerging almost every month.
The launch of the crypto VC fund in Hong Kong also highlights the city’s growing importance as a safe haven for the crypto industry. Yen Shiau Sin, the managing director of Titan Fund, stated that Asian firms are benefiting from a crackdown on crypto in the United States, as projects are considering relocating to Hong Kong to seek support. This follows Hong Kong’s announcement in October 2022 that it will focus on building regulations to foster Web3 innovation. The government has since doubled down on this policy shift, formulating pro-crypto regulations and enabling regulated crypto exchanges to provide services to retail customers.
In conclusion, CMCC Global’s successful raise of $100 million for its Titan Fund demonstrates the continued interest and support for blockchain startups in Asia. The fund’s focus on key areas within the crypto industry, such as blockchain infrastructure, consumer applications, and financial services, reflects the evolving landscape of the sector. Moreover, Hong Kong’s position as a crypto-friendly jurisdiction and its proactive approach to promoting Web3 innovation further solidify its status as a prominent player in the global crypto ecosystem.
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