Hong Kong-based venture capital (VC) firm CCMC Global has revealed the launch of a new fund for the blockchain space in Asia amid concerns about dwindling funding for the industry.
According to a Bloomberg report, the Richard Li-backed VC firm’s new fund is worth an impressive $100 million for blockchain firms in Hong Kong. Martin Bauman, CCMC’s co-founder, pointed out that Hong Kong firms in the Series A and B stages of their growth will be given significant attention while promising startups across Asia will be considered.
Bauman disclosed that firms exploring the metaverse and decentralized finance (DeFi) are more likely to pique the attention of the VC fund. The firm’s co-founder noted that despite the prolonged bearish market, there exists a plethora of capital “sitting on the sidelines waiting for the right entry valuations to pull the trigger.”
The focus on Hong Kong’s Web3 startups is largely fuelled by the region’s decision to transform itself as a global hub for digital currencies. Bauman revealed that the fund aims to capitalize on the increasing exodus of U.S. startups to Hong Kong as the U.S. regulators tighten the noose around its local industry.
The U.S. “is shooting themselves in the foot,” CMCC founder Charles Morris said. “We see places like Hong Kong having a real opportunity at this point in time to bring those firms and entrepreneurs to the city.”
A bird’s eye view on the state of private funding for digital currency companies paints a bleak picture as analysts point to a massive decline in funding. Animoca Brands halved its Web3-focused fund over a decline in adoption levels for blockchain-based offerings worldwide following the catastrophic collapses in late 2022.
Switzerland’s Syz Group announced the creation of a $50 million fund for Web3 hedge funds, while Bitget disclosed a $100 million fund for promising companies in the industry. Bitget noted that the fund will not focus solely on decentralized finance. Rather, it will support startups in Socialfi and Gamefi niches.
Hong Kong—A beehive of activities
Since Hong Kong announced plans to become the digital currency capital of the world, several companies have expressed a desire to be domiciled in the city. Official disclosure from the city’s administrators confirms that the global firms seeking registration in Hong Kong exceed 80, drawn by the promise of low taxes and crystal clear rules.
While international firms are keen on establishing operational bases in the city, Chinese banks are rubbing their hands at the prospect of offering financial services to the incoming firms. Chinese banking officials have been spotted in Web3 events in Hong Kong despite the blanket ban on digital currencies in mainland China.
Want to learn more about the fundamentals of blockchain technology? Check out the BSV Blockchain Resources page where you can download useful ebooks—from unleashing the value of extreme scale data to understanding the potential of the Metaverse, among the many topics—for free.
Watch: Blockchain will fuel the next generation
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.