As the cryptocurrency market is expanding exponentially toward achieving its goals, venture investment firms have found it a lucrative sector to invest in and broaden worldwide adoption. According to a recent report from Bloomberg, Bill Qian, who left Binance in June to become chairman of Dubai-based Cypher Capital, is now willing to invest in startups focused on Web3. The next edition is determined by the internet’s laxity, which supporters claim will be more decentralized and reliant on blockchain technology. With this bold move, Qian prints the bullish scenario of the Web3 industry, which is preparing for a skyrocketing trend in the next few years.
Qian Leads The Charge Of VC Investment
Venture capital firms have been instrumental in providing the necessary funding for innovative startups to develop cutting-edge technologies in the crypto space. These firms have invested billions of dollars in cryptocurrency and blockchain startups, providing them with the financial resources to build new platforms, applications, and protocols.
After departing from Binance in June, Qian assumed the role of Chairman at Cypher Capital, a Dubai-based investment firm. The company has a keen interest in financing startups that are focused on Web3, which is expected to leverage blockchain technology for a more decentralized internet. Cypher Capital presently has a team of ten employees, and it has recently enlisted the support of Elaine Liu, a former Tencent executive, to facilitate its expansion in the UAE. In November, the firm established a designated office space for crypto and blockchain startups in Dubai Marina as part of its efforts to seek out future investment opportunities.
Without specifying any names, Qian, who previously worked at Chinese e-commerce behemoth JD.com Inc., expressed his intention to seek funding from notable Asian technology leaders. While he did not disclose whether his fund has already secured any commitments, Qian acknowledged that the recent resurgence of digital assets, including a 50% surge in Bitcoin, has made fundraising more accessible this year.
Cypher Capital To Prioritize Web3 Projects
Last year’s market turbulence, which caused several crypto companies such as Celsius Network and FTX to collapse, has significantly impacted the funding available for start-ups. Venture capital investment reached its lowest point in almost two years in the fourth quarter, leaving many new projects without sufficient funding to expand.
One of the primary challenges facing the crypto industry is the limited growth of its user base, according to Qian. This is because the primary use case for many individuals is still limited to trading or gambling. As a result, Cypher Capital is prioritizing projects that aim to introduce more of the five billion internet and social media users to the world of Web3, he stated.
Qian said, “The macro backdrop for us is way better now than my expectations half a year ago,” he said in an interview. Even so, “money is not cheap anymore.” As jurisdictions such as the US tighten regulations around the crypto industry in response to last year’s scandals, which included the swift collapse of FTX and the prosecution of its founder, Sam Bankman-Fried, Dubai – along with the wider United Arab Emirates – is becoming a hub for crypto.
Crypto entrepreneurs, including Binance CEO Changpeng Zhao and Polygon’s Sandeep Nailwal, have relocated to Dubai, which recently released a final framework for regulating the crypto industry. The value of venture investment in the crypto industry can be seen in the success of some of the most significant players in the market. Companies like Coinbase, Kraken, and Binance, which have become household names in the crypto industry, were all initially funded by venture capital firms. These companies have gone on to achieve massive valuations, with Coinbase, for example, recently going public with a valuation of over $36 billion.
