Hong Kong-based crypto venture capital firm CMCC Global has successfully raised $100 million for its newly established crypto fund, Titan Fund. This milestone was achieved after closing its inaugural funding round on October 4, with the enthusiastic participation of 30 investors, including notable names such as Block.one, Pacific Century Group led by Hong Kong tycoon Richard Li, Winklevoss Capital, Jebsen Capital, and Animoca Brands founder Yat Siu.
The Titan Fund is poised to make strategic investments in several key areas of the blockchain ecosystem. These include blockchain infrastructure, consumer-focused applications such as gaming and nonfungible tokens (NFTs), and various financial services like cryptocurrency exchanges, digital wallets, and lending and borrowing platforms.
CMCC Global’s Titan Fund marks the fourth such initiative aimed at providing early-stage equity investments to blockchain startups, with a primary focus on Hong Kong. Over its journey, the fund has already completed five investment rounds, with two directed toward promising Hong Kong-based startups.
Two of the notable beneficiaries of these investments include Mocaverse, an NFT project launched by Hong Kong’s Animoca Brands, which successfully raised $20 million in September 2023, and Terminal 3, a pioneering Web3 data infrastructure startup.
The launch of the $100 million Titan Fund comes at a time when the crypto market has experienced a funding drought due to market volatility and the FTX collapse. Pitchbook data indicates a staggering 70.9% year-on-year decline in the value of global venture capital investments in crypto firms, coupled with a 55% decrease in the number of deals. This stark contrast to the previous bull market, where crypto startups were raising billions and new unicorns emerged regularly, underscores the significance of CMCC Global’s initiative.
The venture capital fund’s launch in Hong Kong further solidifies the city’s position as a welcoming hub for crypto innovation. Titan Fund’s managing director, Yen Shiau Sin, highlights the advantages Asian firms now enjoy, as the United States has implemented stricter crypto regulations. Projects are increasingly considering Hong Kong as an attractive destination for collaboration and investment opportunities.
Hong Kong itself has undergone a shift in its crypto policy, emphasizing the development of regulations to support the growth of Web3. Regulators have shown commitment to this shift by formulating pro-crypto regulations, enabling the establishment of regulated crypto exchanges, and extending services to retail customers. This development signals Hong Kong’s dedication to nurturing the blockchain and crypto industry within its borders.