October 6, 2023

Hong Kong’s CMCC Raises $100 Mln To Support Asian Blockchain Startups

Hong Kong

Hong Kong

CMCC Global, a venture capital firm based in Hong Kong, has raised $100 million to support blockchain startups in Asia.

The VC firm’s crypto fund, the Titan Fund, concluded its first funding round on October 4th with the backing of 30 investors, which included Block.one, Richard Li’s Pacific Century Group, Winklevoss Capital, Jebsen Capital, and Animoca Brands founder Yat Siu.

The fund will focus on investments in key areas such as blockchain infrastructure, consumer applications (including gaming and nonfungible tokens), and financial services (including exchanges, wallets, and lending/borrowing platforms).

CMCC Global’s crypto fund is their fourth to provide equity investments to early-stage blockchain startups, with Hong Kong being a primary focus.

The fund has already completed five investment rounds, two of which were for Hong Kong-based startups: 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).

The $100 million crypto venture fund has been launched amidst a lack of crypto funding due to the bear market and the collapse of FTX.

Pitchbook data shows that the value of global venture capital investments in crypto firms has decreased by 70.9% year-on-year, while the number of deals has fallen by 55%. This contrasts the bull market, where crypto-based startups raised billions, and the crypto ecosystem saw a new unicorn every other month.

The launch of the crypto VC fund in Hong Kong also highlights the city’s increasing significance as a safe harbor for crypto. Yen Shiau Sin, the managing director of Titan Fund, stated that a crackdown on crypto in the United States benefits Asian firms as “projects are thinking of coming here talking to us.”

In October 2022, Hong Kong announced a change in its crypto policy, focusing on building regulations to promote Web3. The regulators have doubled down on this policy shift and created pro-crypto regulations, allowing for regulated crypto exchanges and even opening up services to retail customers.

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