CMCC Global, a Hong Kong-based crypto-focused venture capital (VC) firm, has successfully raised $100 million for its latest venture, the Titan Fund. The fund concluded its inaugural funding round on October 4 and witnessed the enthusiastic participation of 30 investors.
These include industry giants such as Block.one, Pacific Century Group led by Richard Li, Winklevoss Capital, Jebsen Capital, and Yat Siu, founder of Animoca Brands as reported by South China Morning Post.
Diverse Investment Focus Areas
Titan Fund is poised to make a substantial impact in various sectors, emphasizing key investment areas:
- Blockchain Infrastructure
- Consumer Applications (Gaming and NFTs)
- Financial Services (Exchanges, Wallets, Lending, and Borrowing Platforms)
The strategy underscores CMCC Global’s commitment to nurturing the growth of the blockchain space across multiple fronts.
Successful Rounds and Hong Kong’s Crypto Resurgence
This marks the fourth equity investment offering by CMCC Global for early-stage blockchain startups, with a distinct focus on Hong Kong. The fund has already completed five investment rounds, with two contributing to promising projects based in Hong Kong.
Notable among these projects are Mocaverse. This is an NFT initiative launched by Animoca Brands in December 2022, securing an impressive $20 million in September. The second Hong Kong-based startup is Terminal 3, a Web3 data infrastructure venture.
Navigating the Bear Market Challenges
Launching the $100 million Titan Fund amid a challenging market landscape, CMCC Global’s move stands out as a beacon of resilience. In the wake of the FTX collapse and a broader bear market, global venture capital investments in crypto firms witnessed a staggering 70.9% year-on-year decline. This is further accompanied by a 55% decrease in the number of deals, as per Pitchbook data.
Hong Kong’s Ascendance as a Crypto Hub
Against the backdrop of a changing crypto landscape, Hong Kong emerges as a safe haven for crypto ventures. The Titan Fund’s Managing Director, Yen Shiau Sin, highlights the city’s growing prominence. He further attributed it to a crackdown on crypto in the United States.
As regulatory uncertainties persist elsewhere, Asian firms view Hong Kong as an attractive destination, with projects increasingly considering relocation and collaboration.
Pro-Crypto Regulations and Hong Kong’s Crypto Policy Shift
The announcement of the Titan Fund aligns with Hong Kong’s strategic shift in crypto policy declared in October 2022. The government’s commitment to fostering Web3 development includes proactively building regulations to support the crypto industry.
This approach has resulted in the formulation of crypto-friendly regulations. Further, it has opened the door for regulated crypto exchanges and extending services to retail customers.