February 6, 2023

The new fund will invest in cryptocurrency companies in three stages spanning from incubation to late-stage growth.

Source: coindesk.com
Source: coindesk.com

Binance Labs, the venture capital arm of cryptocurrency exchange Binance, has raised $500 million to establish a fund that will invest in web 3 and blockchain companies.

DST Global Partners, Breyer Capital, Whampoa Group and other private equity funds all participated in the raise, according to a blog post on Wednesday.

“The goal of the newly closed investment fund is to discover and support projects and founders with the potential to build and to lead Web 3 across DeFi, NFTs, gaming, Metaverse, social, and more,” Binance CEO Changpeng “CZ” Zhao said.

The fund will make investments across companies in three stages: Incubation, early-stage venture, and late-stage growth.

Binance Labs’ fund is the latest in a string of recently established crypto funds by venture capitalists, with Andreessen Horowitz (a16z) raising $4.5 billion last week to demonstrate confidence in the market in spite of the recent downturn.

The entire market cap for cryptocurrencies is at $1.3 trillion, a 55% drop since November when it was at $2.9 trillion.