Hong Kong-based venture capital firm CMCC Global has successfully raised $100 million for its crypto fund, the Titan Fund, aimed at supporting blockchain startups in Asia. The fund’s inaugural funding round concluded on October 4, with participation from 30 investors, including notable firms like Block.one, Winklevoss Capital, and Richard Li’s Pacific Century Group.
The primary focus of the Titan Fund will be investments in key areas within the blockchain industry. This includes funding for blockchain infrastructure, consumer applications such as gaming and nonfungible tokens (NFTs), as well as financial services like exchanges, wallets, and lending and borrowing platforms.
This latest crypto fund from CMCC Global is its fourth to offer equity investments to early-stage blockchain startups, with a specific emphasis on startups based in Hong Kong. The fund has already completed five investment rounds, with two of them being directed towards Hong Kong-based startups. Notable beneficiaries so far include Mocaverse, an NFT project launched in December 2022 by blockchain firm Animoca Brands, and Terminal 3, a Web3 data infrastructure startup.
The timing of CMCC Global’s $100 million crypto venture fund is noteworthy as it comes during a period where the crypto funding landscape is experiencing a downturn. The collapse of FTX and the overall bear market have been detrimental to crypto funding, resulting in a 70.9% decline in the value of global venture capital investments in crypto firms compared to the previous year. Additionally, the number of deals has also fallen by 55%. This downturn is in stark contrast to the bull market, where crypto-based startups were able to raise billions, and the crypto ecosystem witnessed the emergence of new unicorns every few months.
The launch of the Titan Fund in Hong Kong reflects the city’s growing significance as a safe haven for cryptocurrencies. Titan Fund’s managing director, Yen Shiau Sin, pointed out that Asian firms are benefiting from the crackdown on crypto in the United States, with more projects considering Hong Kong as an attractive destination. Hong Kong itself has adopted a crypto-friendly stance, announcing a shift in its crypto policy in October 2022. The government has since demonstrated its commitment to building crypto-friendly regulations and fostering an environment conducive to the growth of Web3. This includes the establishment of regulated crypto exchanges and opening services to retail customers.
Overall, CMCC Global’s successful raise of $100 million for the Titan Fund highlights the continued interest and confidence in blockchain startups in Asia. With Hong Kong positioning itself as a favorable destination for crypto projects, both local and international investors are eager to support and contribute to the development of this emerging industry in the region.