Binance Labs to Invest 500 Million USD in Web3 and Blockchain Startups

Binance Labs to Invest 500 Million USD in Web3 and Blockchain Startups

Binance Labs, the venture capital wing of the leading crypto exchange, has announced the launch of a new fund that will focus its effort on Web3 and blockchain technologies. The fund will launch with 500 million USD capital, to invest in companies that take cryptocurrencies and augment their use cases using Web3 and other technologies.

Binance Labs Launches 500 Million USD Web3, Blockchain Fund 

The investment and VC company of the cryptocurrency exchange has announced a new round of investments seeking to diversify its investment portfolio. The capital wing of the company has announced it is launching an investment fund to focus on the blockchain and Web3 sector. The fund will have 500 million USD at its disposal and will look to invest money in projects aiming to develop the functions of cryptocurrencies.

The fund has the participation of DST Global Partners and Breyer Capital, among other firms and investors. Binance CEO Changpeng Zhao stated that one of the objectives of this fund is to ease the connection of elements destined to accelerate the adoption of these new technologies. He declared:

"The goal of the newly closed investment fund is to discover and support projects and founders with the potential to build to lead Web3 across defi, NFTs, gaming, metaverse, social, and more."

Investment Strategy

Binance Labs has been around since 2018 and has supported projects that have been relevant in the cryptocurrency and Gamefi industry such as Axie Infinity, Elrond, Dune Analytics, and The Sandbox. The division specialised in the incubation of such companies, meaning that it funds startups in the field that have just started to operate and are exploring funding counseling for their operation.

Binance Labs has hosted four seasons of its global incubation project, where more than 100 projects coming from 25 different countries have been incubated by the organization. Incubation will also be a big part of the new fund, with the exchange aiming to connect with these startups and help them to grow by providing them with funding and expertise in different areas.

However, Binance also announced that it will invest in more mature projects including early-stage companies in areas such as defi, NFTs, gaming, metaverse, social, and crypto, and also in already established companies that would act as partners to Binance, extending its functions and reach by using its platform.