The Binance Labs incubator has just closed a financing allowing it to create a new $500 million investment fund. The fund will support various promising projects contributing to the development of the blockchain and Web3 ecosystem.
Binance Labs sets up a new investment fund
Binance Labs, the investment arm of the popular cryptocurrency exchange, has set up a new $500 million fund. The package was funded by a round of financing that brought together names like DST Global Partners and Breyer Capital, as well as other private equity.
Through this new investment fund, Binance expresses its desire to support more and more Web3 projects, as its founder Changpeng Zhao (CZ) points out:
“In a Web3 environment, the link between values, people and economies is essential, and if these three elements come together to build an ecosystem, it will accelerate the mass adoption of blockchain and crypto technology. The goal […] is to discover and support projects and founders with the potential to build and lead the Web3 […].”
The incubator’s goals
With this deal, Binance Labs intends to support projects at three different strategic stages of their development.
It starts with incubation, when the recent initiative still needs to define the direction of its product and establish a quality network. Then comes the first funding campaigns, where the project will distribute part of its tokens in exchange for capital.
Finally, we will find the growth investments. At this point, the project is at a more advanced stage, during which it wants to expand its scale and boost its development. Since its creation in 2018, Binance Labs has thus supported more than 100 initiatives including the blockchain game Axie Infinity or the liquidity aggregator 1inch.
This announcement is just one more example that shows that despite the current market situation, companies are determined to continue their investments in the ecosystem.