Binance Raises $500 Million Fund For Web3, Gaming, DeFi, NFT & More

Paigambar Mohan Raj
Source: Mint/CryptoPotato

Binance Labs, the cryptocurrency exchange’s venture capital arm, has collected $500 million to launch a fund that would invest in web 3 and blockchain businesses.

According to a blog post published on Wednesday, the fundraising included DST Global Partners, Breyer Capital, Whampoa Group, and other private equity groups.

Changpeng Zhao, popularly called CZ, Founder and CEO of Binance, said

“In a Web3 environment, the connection between values, people, and economies is essential, and if these three elements come together to build an ecosystem, that will accelerate the mass adoption of the blockchain technology and crypto.”

The recently closed investment fund’s purpose, according to him, is to find and assist projects and creators with the ability to create and lead Web3 spanning across DeFi, NFTs, gaming, Metaverse, social, and more.

How does Binance aim to fund said projects?

The fund aims to invest in companies that are in three stages, namely, incubation, early-stage venture, and late-stage growth.

Binance Labs’ incubation program seeks to link businesses with Binance’s network of resources, experts, and mentors to help them create and grow successful products.

Infrastructure, DeFi, NFTs, gaming, Metaverse, social, and crypto adoption platforms are among the early-stage venture investments that include token and equity investments across all sectors of cryptocurrency and Web3, including infrastructure, DeFi, NFTs, gaming, Metaverse, social, and crypto adoption platforms.

Late-stage growth investments are aimed at more established enterprises wanting to scale or bridge into the Web3 ecosystem, with Binance as a strong strategic partner.

Binance Labs’ fund is the latest in a long line of venture capitalist-backed crypto funds, with Andreessen Horowitz (a16z) launching $4.5 billion last week to show confidence in the sector despite the current dip. Moreover, Ling Zhang and Wayne Fu, two former Binance executives, recently unveiled a $100 million fund called Old Fashion Research.

The total market capitalization of cryptocurrencies is at $1.3 trillion, down from $2.9 trillion in November.