Binance Labs, Binance’s venture capital and innovation incubator, has raised $500 million for its first start-up fund, which it plans to invest in Web3 ecosystem businesses. DST Global and Breyer Capital, two American venture capital firms, lead the multimillion-dollar fund. The investment was also made by other unnamed family offices and organizations.
Binance Labs’ major goal is to invest in firms that are developing the Web3 ecosystem. It plans to accomplish so in three stages: incubation, early-stage development, and late-stage development.
Web3 is being billed as a new Internet iteration based on blockchain technology. The number of Web3 engineers has lately surged from 300,000 to 500,000, according to Ken Li, Executive Director of Binance Labs.
He explained that the field is particularly intriguing for his company because it is still in its infancy and might become the next great thing. Non-fungible tokens and decentralized autonomous organizations (DAOs) are examples of Web3 projects:
“We are looking for projects with the potential to drive the growth of the Web3 ecosystem.”
Start-ups valued at more than $1 billion are “slowing down a bit,” according to Li. This is not the case, however, with early-stage market participants like Web3 businesses.
Binance Labs “always undertakes its due research and has a strong conviction in its investment approach,” according to the CEO. It is also cognizant of the risks associated with investing in start-up businesses:
“We understand that investing in the early phases entails risk. “The industry is still young, and it used to be younger.”
Binance Labs has a diverse range of investments. It has given money to the business publication Forbes, Sky Mavis (the firm behind Axie Infinity), and many others throughout the years.
