CMCC Global launches $100 million fund for Web3 investments

The Hong Kong-based venture firm CMCC Global Asset Management launched a Web3-infrastructure fund. Investors include Winklevoss Capital and Jebsen Capital, South China Morning Post.

The Titan Fund structure focuses on early-stage investments in blockchain startups across the following areas:

• infrastructure;
• gaming services;
• NFT-platforms;
• financial applications and exchanges;
• wallets;
• crypto lending.

Other participants in the fund include Block.one, Pacific Century Group and Animoca Brands founder Yat Siu. 

Two of the five portfolio companies are Hong Kong-based, said CMCC Global co-founder Martin Baumann.

“If Hong Kong continues on its path to adopting Web3, there will naturally be more and more entrepreneurs establishing companies in this space,” he added.

Managing Partner Titan Fund Yen Shiau Sin said that Asian firms will benefit from the adverse conditions in the US crypto market.

However, Baumann said fundraising in the current environment is “extremely challenging”. The new CMCC Global fund appeared at a time when investments in the crypto space had dried up following a string of bankruptcies and the collapse of the FTX exchange. 

According to PitchBook, global venture funding in blockchain companies in Q2 fell 70.9% year over year. The total number of deals decreased by 54.5%.

Baumann emphasised that exchanges will not be the fund’s main focus.

“I think there are enough exchanges in the world, and they are well capitalised,” he added.

Founded in 2016, CMCC Global Asset Management has been an early investor in Solana, Cosmos and Terra.

In 2021, the firm started fundraising for a crypto fund with $300 million in assets.

In September, CMCC Global led a funding round for Animoca Brands’ Mocaverse metaverse project.