Market Analysis

Binance Labs Closes $500M Web3 Fund For Crypto Startups

binance-labs-closes-$500m-web3-fund-for-crypto-startups

Key Takeaways

  • Binance Labs has raised $500 million to support crypto startups and drive adoption of Web3 technologies.
  • The fund represents the first time Binance’s venture capital arm has raised capital from outside investors.
  • The fund will invest in projects spanning three stages: incubation, early-stage development, and late-stage growth.

Binance Labs, the in-house venture capital arm of the world’s largest crypto exchange Binance, has raised $500 million to support crypto startups.

Binance VC Arm Raises $500M

Money keeps pouring into crypto despite diminished prices and looming recession risks.

Binance’s venture capital arm, Binance Labs, announced Wednesday that it had raised $500 million to drive adoption of Web3 and blockchain technologies. The fund is Binance’s first raise to take in outside capital, with backers including DST Global Partners, Breyer Capital, and several other family offices, private equity funds, and corporations.

Per the announcement, the new fund will invest in crypto startups across three stages: incubation, early-stage development, and late-stage growth. For projects in their incubation phase, Binance Labs will support them by sharing its network of resources, experts, and mentors. In contrast, the fund will back early-stage startups through token and equity investments, and late-stage projects through more involved strategic partnerships. Commenting on the $500 million investment initiative, Binance founder and CEO, Changpeng Zhao, 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 goal of the newly closed investment fund is to discover and support projects and founders with the potential to build and to lead Web3 across DeFi, NFTs, gaming, Metaverse, social, and more.”

Binance’s announcement comes about a week after the venture capital giant Andreessen Horowitz said it would launch its fourth crypto-focused fund—the largest industry has ever seen, counting $4.5 billion in commitments. With crypto prices in a slump for almost seven consecutive months and more rate hikes looming on the horizon, crypto startups appear to have shaken off the adverse market conditions and continued to raise capital at multiple billion-dollar valuations. For instance, in April alone, the gaming Metaverse The Sandbox, USDC issuer Circle, and high-throughput blockchain NEAR separately raised a combined sum of $1.15 billion, indicating that investors still see many lucrative investment opportunities in the space.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

a16z Finalizes Record-Breaking $4.5B Crypto Fund

News

Andreessen Horowitz has confirmed it will go ahead with a new $4.5 billion crypto investment fund after rumors the firm was planning a record-breaking raise spread earlier this year.   a16z…

The Sandbox Reportedly Plans $400M Raise at $4B Valuation

News

One of crypto’s leading Metaverse games, The Sandbox, is reportedly considering raising $400 million from new and existing investors at a $4 billion valuation. The Sandbox Reportedly Seeking $400 Million…

NEAR Raises $350M in Tiger Global-Led Funding Round

News

NEAR Protocol has raised $350 million in a new funding round led by renowned American hedge fund Tiger Global. NEAR Protocol Closes $350M Funding Round NEAR Protocol seems to be…

Circle Raises $400M, Eyes Capital Market Applications For USDC

Circle, the U.S.-based company behind the second-largest centralized stablecoin on the market, has raised $400 in a funding round including BlackRock, Fidelity, Marshall Wace, and Fin Capital. USDC Issuer Circle…

Click here for the the original source (post)