Hong Kong Fund To Raise $100 Million For Crypto Startups

Lavina Daryanani
Source: Vecteezy

Unlike other regions, Hong Kong’s crypto sector has been making positive strides. With regulators softening their stance without compromising on consumer protection, the special administrative region has managed to garner interest from a host of firms, that want to set up their base in Hong Kong. A recent report from Bloomberg highlighted that a Hong Kong-based fund aims to raise $100 million this year, to invest in crypto and other digital asset-related startups.

Also Read: 80+ Crypto Firms Eyeing Hong Kong As a Foundation Base

The fund is led by Ben Ng, a venture partner at equity firm SAIF Partners, and technology investor Curt Shi. In fact, it has reportedly secured at least $30 million in “funding commitments.” Till now, the fund has invested in six digital-asset projects, including Hong Kong-based metaverse company GigaSpace, and Australia-based digital sports club, One Future Football.

Fundraising has been “relatively smooth”: Shi

Hong Kong remains committed to becoming a digital asset hub. In fact, regulators of the region are set to hold a meeting between crypto firms and bankers next month to ease financing for the sector. Alongside, this initiative intends to facilitate “direct dialog” and share “practical experiences and perspectives” in opening and maintaining bank accounts. Even though Hong Kong is currently pro-crypto, there are fears that the tables could eventually turn one day. Commenting on the same, Shi told Bloomberg,

“I understand the concerns, but nothing is perfect given the complexity of the crypto economy and current geopolitical situation. Our strategy is to continue to see how things go.”

Opining on investor behavior, Shi said that investors have been cautious about deploying capital into new crypto projects, but fundraising has been “relatively smooth.” He added that many Hong Kong families with an interest in the digital economy have taken part in the fundraising. Alongside, some Chinese family offices investing in Australia and Singapore are also participating. Furthermore, Shi said,

“I believe that Hong Kong will continue to have a certain degree of openness and flexibility. While our portfolio and fund will embrace Hong Kong and its policies, we will continue to have a presence in Australia, Singapore, as well as in Europe and the US.”

In fact, China is also reportedly backing Hong Kong’s crypto hub vision. As Watcher Guru reported recently, officials from China’s Liaison Office have been “frequent guests” at Hong Kong’s crypto gatherings. Moreover, their encounters have been “friendly.” Additionally, officials have been checking on developments, asking for reports, and in some cases, making follow-up calls as well.

Also Read: Hong Kong Regulators to Assist Crypto Firms with Banking