The CMCC Global-managed Titan Fund recently closed it’s initial investment round, raising $100 million from more than 30 investors. Block.one, a blockchain firm, the Pacific Century Group, run by Hong Kong business tycoon Richard Li, Winklevoss Capital, Jebsen Capital, and Yat Siu, the man behind Animoca Brands, are just a few of the notable investors. The funding comes at a time when the cryptocurrency industry is experiencing a financial crisis as a direct result of a number of disasters that happened in the previous year, one of which being the bankruptcy of the exchange FTX.
The Titan Fund, the fourth fund from CMCC Global, will focus on three key sectors for investment: blockchain infrastructure, consumer applications like gaming and NFTs, and financial services including exchanges, wallets, and lending platforms. CMCC Global was the initiator of this fund. One of the first investments made by the fund was in Mocaverse, a non-fungible token (NFT) project based in Hong Kong that received $20 million in September. Another initial investment is in Terminal 3, a Web3 data infrastructure startup also based in Hong Kong.
Martin Baumann, a co-founder of CMCC Global, claims that the organisation was founded in Hong Kong in 2016 with the goal of investing in “the best entrepreneurs globally.”
The business feels a “natural attachment” to Hong Kong and sees “a lot of potential” for the city to lead the way in financial technology innovation. Hong Kong recently modified its position on cryptocurrencies by putting out new legislation that will allow licenced cryptocurrency exchanges to accept retail traders as customers and take effect in October 2022. The city is becoming a more desirable site for cryptocurrency businesses as a result of the regulation change.
PitchBook statistics show that the value of global venture capital investments in cryptocurrency startups fell by 70.9% year over year, while the number of transactions fell by 54.5%. CMCC Global has formed a new fund to show its faith in the long-term potential of the cryptocurrency and blockchain industries, particularly in Asia, despite the challenging circumstances.