CMCC Global, a Hong Kong-based venture capital firm specializing in cryptocurrencies, has successfully secured $100 million for its new Titan Fund, which is dedicated to nurturing Asian blockchain start-ups. This accomplishment comes despite the crypto sector grappling with challenges arising from a series of collapses in the past year.
In an interview with the South China Morning Post, CMCC Global’s co-founder, Martin Baumann, disclosed that the Titan Fund’s initial round of funding saw the participation of more than 30 investors. Among these investors are prominent names like blockchain company Block.one, Richard Li’s Pacific Century Group, Winklevoss Capital, Jebsen Capital, and Animoca Brands founder Yat Siu.
CMCC Global’s Titan Fund
The Titan Fund, which marks CMCC Global’s fourth fund, primarily focuses on equity investments in early-stage blockchain start-ups, with a particular emphasis on those based in Hong Kong. Baumann highlighted that among the five investments already made by the fund, two are Hong Kong-based companies.
CMCC Global notably played a pivotal role in supporting Mocaverse, an NFT project launched by Hong Kong’s blockchain unicorn, Animoca Brands, last December. Mocaverse successfully raised $20 million in September. Additionally, CMCC Global participated in a pre-seed funding round for Terminal 3, a Hong Kong-based Web3 data infrastructure start-up in August. Baumann clarified that while the Titan Fund doesn’t have strict mandates for capital allocation to Hong Kong firms, it aspires to invest in the “best entrepreneurs globally.” However, he expressed CMCC Global’s strong attachment to Hong Kong, emphasizing the city’s potential for fintech innovation.
Hong Kong’s Policy Shift
Hong Kong, once a thriving hub for crypto businesses, saw a decline in the sector due to regulatory uncertainties surrounding digital assets and stringent pandemic-related restrictions. Nevertheless, in October of the preceding year, the city underwent a significant policy shift, welcoming the crypto industry with new regulations that permitted licensed crypto exchanges to serve retail traders.
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Despite recent setbacks, such as the alleged fraudulent exchange JPEX, which has shaken investor confidence, crypto firms in Hong Kong remain optimistic about the long-term prospects of the industry. CMCC Global’s Titan Fund mirrors this optimism, as it provides substantial funding to foster blockchain innovation and entrepreneurship in the region.