Hong Kong-based crypto venture capital firm CMCC Global has raised $100 million to invest in blockchain firms in the city and beyond, according to a release on Thursday.
The firm roped in Block.one (B1) as its anchor investor, which committed $50 million to the vehicle, which is called Titan Fund. Block.one is a software firm known as the developer behind the popular EOSIO open source software. B1 will become a minority shareholder of CMCC Global’s holding entity as part of the strategic investment, per the release.
CMCC Global also participated with a 15% GP commitment, alongside investors such as Hong Kong billionaire Richard Li’s Pacific Century Group; Jebsen Capital, the growth equity investment arm and in-house asset manager of major brand builder and investor Jebsen Group; and New York city-based family office Winklevoss Capital.
With personal investments from notable innovators including Yat Siu from Animoca Brands, the $100 million capital investment marks the first close of the new fund.
The firm did not disclose details such as the target raise and the timeline for the final close.
The new fund will back early-stage startups across three key verticals including infrastructure, fintech, and consumer applications, via equity investments.
Yen Shiau Sin, who previously worked as director of strategic investments at B1, will join CMCC Global as a managing partner to launch and run the Titan Fund. Jonathan Cheung will join the firm as the investment principal after his stint at Brevan Howard Digital, per the release.
Also, CMCC Global’s co-founders Charlie Morris and Martin Baumann are co-managing the fund and will sit on the investment committee.
State Street will serve as the fund administrator, while EY will serve as the auditor. The fund is managed by Fintech Investment Group Limited, a wholly-owned Hong Kong-based subsidiary of CMCC Global, which has been granted respective asset management licences from the Securities & Futures Commission of Hong Kong.
April-June 2023 was the weakest fundraising quarter for crypto venture capitalists, recording the fewest crypto-focused global fund launches since Q3 2020, according to a report published by the research arm of crypto investment firm Galaxy Digital.
Despite that, some argue that Hong Kong has risen to be a prime fundraising destination for crypto funds, as there is a deep capital pool in the market, mostly coming from Chinese Web2 investors who are looking to enter the Web3 space.
However, the city has recently been hit with one of the largest-ever fraud cases linked to the unlicensed Dubai-based crypto exchange JPEX, which allegedly swindled HK$1.5 billion ($191.6 million) from 2,417 victims, as of September 29, according to a government release.
Hong Kong police have been reportedly seeking help from Interpol and overseas crypto trading platforms to intercept the flow of crypto in connection to the scam, the South China Morning Post reported on September 22, citing a source familiar with the case.