Binance Labs closes $500M fund to invest in Web3 projects

The world's largest crypto exchange by volume - Binance - today revealed that its investment arm, Binance Labs, has closed a new $500 million investment fund supported by DST Global Partners, Breyer Capital, and others.

Notwithstanding bearish sentiments in crypto markets worldwide, the $500 million fund will invest in projects that can extend the use cases of cryptocurrencies and drive the adoption of Web3 and blockchain technologies, as per a Binance statement.

Changpeng Zhao ‘CZ’, Founder and CEO of Binance, said:

“In a Web3 environment, the connection between values, people, and economies is essential, and if these three elements come together to build an ecosystem, that will accelerate the mass adoption of the blockchain technology and crypto. The goal of the newly closed investment fund is to discover and support projects and founders with the potential to build and to lead Web3 across DeFi, NFTs, gaming, Metaverse, social, and more.”

Binance Labs has invested in over 100 projects from over 25 countries, with its portfolio including industry-leading projects 1inch, Audius, Axie Infinity, Dune Analytics, Elrond, Injective, Polygon, Optimism, The Sandbox, and STEPN.

The investment arm usually funds projects across incubation, early-stage venture, and late-stage growth stages, and the fresh $500 million fund will reportedly be allocated across these stages.

In the incubation stage, Binance Labs typically connects projects with Binance’s network of resources, experts, and mentors to help them drive successful product development and growth. Binance Labs runs its Incubation Programme regularly and is currently supporting its fourth cohort.

Its early-stage venture investments include token and equity investments across infrastructure, DeFi, NFTs, gaming, Metaverse, social, and crypto adoption platforms.

Its late-stage growth investments target more mature companies looking to scale or bridge into the Web3 ecosystem with the Binance ecosystem as a solid strategic partner.

Besides Binance Labs, bearish crypto markets are not stopping other Web3 venture funds from doubling down on investing in the sector.

Just last week, VC firm Andreessen Horowitz's crypto unit a16z crypto closed $4.5 billion to invest in Web3 projects.

This brings the total funds raised to more than $7.6 billion. The company intends to invest $1.5 billion in seed investments and $3 billion in traditional venture investments.