Chinese Capital Fund Unveils $10B Web3 Investment Fund

UTC by Chimamanda U. Martha · 3 min read
Chinese Capital Fund Unveils $10B Web3 Investment Fund
Photo: Depositphotos

Over the past few weeks, the Web3 industry has witnessed a surge in funds from major capital firms, indicating a strong belief in the growth of this emerging economy.

GBA Capital Fund, one of China’s leading venture capital companies, has announced the launch of a $10 billion investment fund dedicated to the Web3 ecosystem.

According to local news media, the company announced during the just-concluded blockchain conference, the Guangdong-Hong Kong-Macao Greater Bay Area Digital Economy Development Conference held on December 26.

Supporting Innovation Across Web3

The $10 billion investment fund will be used to support companies, including startups focused on virtual reality, the metaverse non-fungible tokens (NFTs), and real-world assets (RWA).

The VC firm aims to empower these companies to transform the Guangdong-Hong Kong-Macao economic area into the world’s “meta-asset capital”.

According to the company’s website, GBA Capital specializes in investment and incubation within the digital economy sector.

“GBA Capital focuses on investment and incubation in the field of digital economy. We aim to integrate the industrial clusters, capital resources, and corporate resources and policy advantages to provide comprehensive support and services to enterprises,” GBA Capital wrote.

The company’s chairman, Haolong Li, said during the blockchain conference that next year, the event plans to conduct “global tours for meta-assets in Japan, Singapore, Dubai, Silicon Valley, Europe, and other locations” as part of efforts to enhance the visibility of meta-assets.

The Chinese investment firm was launched by China Europe International Financial Group in Hong Kong. GBA Capital has already formed strategic partnerships with major financial institutions, including the Asia Pacific Investment Bank and China’s National Engineering Laboratory.

In May, the company’s subsidiary, Hongkong Global, secured angel funding from institutional investors. The funding brought the unit’s valuation to 100 million Chinese yuan ($14 million).

At the time, Zhongrong disclosed its plans to use the funds to back incubate Web3 projects that aim to provide industrial services in the field of artificial intelligence.

Growing Web3 Investments Globally

Over the past few weeks, the Web3 industry has witnessed a surge in funds from major capital firms, indicating a strong belief in the growth of this emerging economy.

On December 23, 2023, South Korean video game developer Wemade Co revealed the launch of a $100 million investment fund for the Web3 ecosystem. This capital was raised in partnership with the Singapore-based VC firm Whampoa Digital. Like GBA Capital, Wemade aims to support startups building blockchain-native games to drive adoption in the digital assets economy.

Danish venture capital firm Heartcore Capital raised £15 million (approximately $16.3 million) to support the growth of the crypto economy.

The funds will support new startups providing business offerings focusing on application layer protocols, including decentralized finance (DeFi) projects in gaming, social, software, and DeSci.

In the same week, LINE NEXT Corp, a VC firm, secured $140 million through a fundraising led by its subsidiary dedicated to the growth of Web3. This financial round was led by Crescendo Equity Partners, the venture capital firm backed by billionaire Venture Capitalist Peter Thiel.

This year also witnessed the launch of the Bitget Web3 Fund by crypto exchange Bitget, with an initial capital of $100.

The derivatives exchange plans to invest in crypto-friendly venture capital firms and promising Web3 projects to enhance the development of the next generation of digital asset projects.

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