CMCC Global Splashes $100 Million on Blockchain Fund Focused on Asian Startups

Asia-based blockchain venture capital (VC) firm CMCC Global has announced the launch of its Titan Fund, committing $100 million to support blockchain startups in the region.

Founded in 2016, CMCC Global is one of the first Asian VC firms focused solely on the blockchain ecosystem.

As announced on its official X (formerly Twitter) page, the firm revealed that the fund’s first focus region will be Hong Kong before expanding to other Asian hubs and, by extension, the world. 

https://www.twitter.com/CMCC_Global/status/1709615418120253485

However, CMCC Global is not the sole investor in the Titan Fund. 

According to an update shared with the South China Morning Post (SCMP) by co-founder Martin Baumann, Winklevoss Capital, owned by Gemini’s Winklevoss Twins and Animoca Brands, are also principal contributors to the blockchain fund. 

Other investors like Block.one, Pacific Century Group, Jebsen Capital, and 30 others are also key players in the Titan Fund. 

Shedding light on its next steps, Baumann stated that the blockchain fund will offer equity investments in early-stage blockchain infrastructure companies, consumer applications, and crypto financial services.

CMCC Global has been a key player in the crypto VC landscape for several years. 

The investment firm has strong ties with fellow Hong Kong-based crypto firm Animoca Brands. It recently participated in a $20 million investment round on a newly acquired non-fungible token (NFT) ecosystem called Mocaverse. 

Having been an early backer of @animocabrands, we are thrilled to continue supporting @ysiu and the team as they develop the Mocaverse, a project set to unify their 450+ portfolio companies and over 700 million addressable users 🚀🚀 https://t.co/bc3BQRICYZ

— CMCC Global (@CMCC_Global) September 11, 2023

The VC company also participated in a pre-seed funding round for Web3-focused services firm Terminal 3 in August 2023. 

Excited to announce the latest addition to our Titan fund! @terminal3io is innovating decentralized storage and building the user data solution of the future 🚀 https://t.co/m9lC8prP7N

— CMCC Global (@CMCC_Global) August 8, 2023

When quizzed on how much of the $100 million will be deployed in Hong Kong, Baumann said the figure is not set in stone yet. 

Instead, its strong connection with the Asian region has made it kick off its new fund operation there instead of in another place.

Despite being an Asia-first VC firm, CMCC Global has continued to expand its global roadmap. The company now runs its operations in North America and Europe.

VC Funding Dropped by 70% 

Globally, the amount of capital injected into crypto-facing businesses has drastically dropped. 

According to a dashboard created by RootData, the amount of investments flowing into the crypto space dwindled by 70% over a 365-day roadmap. 

Providing context, RootData stated that VC funding dropped from $1.8 billion-plus in 149 rounds in June 2022 to only $520 million generated by only 83 projects in June 2023.

More recent data shows that 166 investment rounds worth $1.69 billion have been made in the last 90 days. However, this figure reflects a 10.2% decline compared to the corresponding period in the previous year.

The declining interest in the cryptocurrency sector cannot be attributed to a lack of innovation. Rather, it stems from the stringent regulatory climate and subsequent market downturns that have hit the nascent industry.

While numerous governments globally have become increasingly cautious, the Hong Kong government took a different approach by revising its stance in October 2022. 

Following this change, a rising number of crypto businesses facing opposition in their home countries have chosen to relocate there.