Binance Labs, the venture capital arm of cryptocurrency behemoth Binance, raised $500 million in partnership with global institutional investors DST Global Partners and Breyer Capital to invest in companies building “Web3.”
This comes on heels after Venture capital giant Andreessen Horowitz (a16z) announced last week, the largest-ever crypto venture fund of $4.5 billion. According to reports, a16z has reserved $1.5 billion for seed investments in Web3 startups. While discussing the mammoth fund, Chris Dixon, General partner at a16z exclaimed “We think we are now entering the golden era of Web3”.
The Capital Will Accelerate Mass Adoption Of Crypto
In the latest development, Binance Labs’, closed a colossal amount of $500 million from leading venture capital firms DST Global, a venture capital and private equity firm that primarily invests in late-stage internet companies and California based independent VC, Breyer Capital. Additionally, the fundraise also attracted support from other major private equity funds, family offices, and corporations as limited partners.
As per reports, the fundraising will invest in projects that can extend the use cases of cryptocurrencies and drive the adoption of Web3 and blockchain technologies. The fund will integrate various technologies including machine learning, artificial intelligence, and blockchain to achieve what some are perceiving as the next revolutionary iteration of the internet.
The key objective of the raised capital will be to discover and support projects and founders with the potential to build Web3 platforms including DeFi, NFTs, gaming and Metaverse among others. The cryptocurrency giant estimates there are currently around 300,000 to 500,000 active Web3 developers, a number it hopes to grow “substantially.” Changpeng ‘CZ’ Zhao, founder and CEO of Binance expressed,
“In a Web3 environment, the connection between values, people, and economies is essential, and if these three elements come together to build an ecosystem, that will accelerate the mass adoption of the blockchain technology and crypto.”
How Will The Fundraise Be Allocated?
Binance Labs’ aims to invest the $500 million in startups across three different stages – incubation, early-stage venture, and late-stage growth. In the investment project, the firm also has a structured program that includes curriculum and mentorship from internal and external sources, wrapping up with a “BUIDLer” demo day alongside infusing capital.
Ken Li, Binance Labs’ executive director of investments and M&A, said that Binance Labs is hoping to capitalize on the recent plunge in digital assets to find founders building Web 3 technology. In addition to propelling Web 3 growth, the fund will also be deployed in tokens as well as shares. Li noted,
“We are looking for projects with the potential to drive the growth of the Web3 ecosystem.”