Hong Kong-based VC Firm CMCC Global Raises $100 Million for Asian Blockchain Startups

Funding Round Sees Participation from Block.one, Pacific Century Group, and more

Hong Kong-based venture capital firm CMCC Global has successfully raised $100 million for its crypto fund, aimed at supporting blockchain startups in Asia. The fund, named Titan Fund, closed its first funding round on October 4th, with 30 investors participating, including Block.one, Pacific Century Group, Winklevoss Capital, Jebsen Capital, and Animoca Brands founder Yat Siu, according to the South China Morning Post.

Investing in Blockchain Infrastructure, Consumer Applications, and Financial Services

The Titan Fund will focus on three key areas: blockchain infrastructure, consumer applications like gaming and non-fungible tokens (NFTs), and financial services including exchanges, wallets, and lending and borrowing platforms.

Continuing Support for Hong Kong-based Startups

This is CMCC Global's fourth fund to offer early-stage equity investments to blockchain startups, with a particular focus on Hong Kong. The firm has already made five investment rounds, two of which went to Hong Kong-based startups. This includes a $20 million investment in the NFT project Mocaverse, launched by Animoca Brands in December 2022, and a pre-seed funding round for web3 data infrastructure startup Terminal 3 in August.

Amid Drought of Crypto Funding, Hong Kong Shines as a Safe Harbor

The launch of the $100 million Titan Fund comes at a time when global venture capital investments in crypto firms have seen a decline due to the bear market and the collapse of FTX. Pitchbook data shows a 70.9% YoY decrease in the value of crypto investments, along with a 55% decrease in the number of deals. In contrast, during the bull market, crypto startups were able to secure significant funding and the ecosystem witnessed the rise of new unicorns on a regular basis.

However, Hong Kong's role as a safe haven for crypto is growing. According to Titan Fund's Managing Director Yen Shiau Sin, the crackdown on crypto in the US has led to Asian firms considering Hong Kong as a favorable destination. Sin stated, "Projects are thinking of coming here talking to us."

Hong Kong's Pro-Crypto Regulatory Shift Boosts the Crypto VC Scene

In October of last year, Hong Kong announced a shift in its crypto policy, prioritizing the development of regulations to encourage web3 innovation. Regulators have since implemented pro-crypto regulations, including the establishment of regulated crypto exchanges and expanded services for retail customers.

As the crypto ecosystem continues to evolve, CMCC Global's Titan Fund offers a significant boost to Asian blockchain startups, with a specific focus on Hong Kong. The $100 million fund provides much-needed funding and support for projects in the areas of blockchain infrastructure, consumer applications, and financial services.

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