CMCC Global, a Hong Kong-based venture capital firm specializing in cryptocurrencies, has successfully raised $100 million for its Titan Fund, aimed at supporting blockchain startups across Asia. The first round of financing for the fund concluded on October 4, with participation from 30 investors, including Block.one, Yingke Group (led by Hong Kong tycoon Richard Li), Winklevoss Capital, Jebsen Capital, and Animoca Brands founder Yat Xiao.
The Titan Fund will focus on making strategic investments in several key areas within the blockchain industry. These include blockchain infrastructure, consumer applications like gaming and non-fungible tokens (NFTs), and financial services encompassing cryptocurrency exchanges, wallets, and lending platforms.
CMCC Global's cryptocurrency fund, Titan Fund, becomes the fourth fund established to provide early-stage equity investments in blockchain startups, with a particular emphasis on those based in Hong Kong. CMCC Global has already completed five investment rounds, including two in Hong Kong-based startups. Notable investments include Mocaverse, an NFT project launched by Hong Kong blockchain company Animoca Brands in December 2022 (which raised $20 million in September), and Terminal 3, a Web3 data infrastructure startup.
The launch of this $100 million cryptocurrency venture fund is significant, given the prevailing shortage of cryptocurrency funding during the bear market and the collapse of FTX. Venture capital investment in global cryptocurrency companies declined by 70.9% year-on-year, and the number of transactions decreased by 55%, according to data from Pitchbook. This downturn stands in stark contrast to the earlier bull market, where cryptocurrency startups regularly secured billions of dollars, and new crypto unicorns emerged almost monthly.
Hong Kong's status as a crypto-friendly hub is further solidified with the establishment of this cryptocurrency venture capital fund. Yen Shiau Sin, managing director of Titan Fund, noted that the U.S. crackdown on cryptocurrencies has led many projects to explore opportunities in Hong Kong. As a result, Asian companies are considering the region as an attractive destination for cryptocurrency-related discussions.
Hong Kong has been proactive in shaping its cryptocurrency policy, unveiling changes in October 2022 that signaled its intention to focus on regulatory measures conducive to the development of Web3 technologies. Regulators have taken steps to implement pro-cryptocurrency regulations, establish regulated cryptocurrency exchanges, and expand services to retail customers, making Hong Kong an increasingly prominent player in the crypto space.
