Cake DeFi Announces $100 Million Investment Arm for Blockchain Startups and Web3 Projects

Singapore-based fintech outfit Cake DeFi has launched its venture capital division focused on funding non-fungible token (NFT) projects, metaverse initiatives, and blockchain-powered startups. The firm has also equipped its new investment arm with $100 million in capital to kick start efforts.

$100 Million-backed VC Arm with Eyes on Blockchain Firms

Decentralized finance (DeFi) service provider and crypto-asset manager Cake DeFi launched a new arm dedicated to venture capital investments. The VC firm will reportedly seek out investment opportunities related to blockchain development and web3 solutions. Also, Cake DeFi has designated $100 million for the division’s funding activities.

According to a report released on Wednesday (March 8, 2022), the so-called Cake DeFi Ventures (CDV) has plans to invest in crypto-related projects that align with the firm’s existing business operations. This includes startups building in areas like NFTs, blockchain gaming, fintech, the metaverse, and the broader decentralized economy.

The crypto fintech company is currently based in Singapore and is regulated to offer a full-stack platform. Cake DeFi users can mine liquidity, buy, and lend cryptos as well as stake tokens they hold. Also, the firm offers digital asset management facilities to investors and currently oversees more than $1 billion in customer assets.

In a bid to ensure that CDV finds complementary initiatives to invest in, Cake DeFi has appointed its co-founder and Chief Executive Officer Dr. Julian Hosp to head its VC branch. Commenting on the company’s decision to launch a VC division, Hosp said:

“By launching Cake DeFi Ventures, we want to bring cryptocurrency and blockchain capabilities to the world. Cake DeFi is one of Southeast Asia’s fastest-growing fintech platforms. The projects that we invest in can expect to receive strong support scaling globally.”

Hosp also explained that CDV portfolio companies can expect access to Cake DeFi’s global expertise, connections, and resources associated with the blockchain industry.

In addition, blockchain engineer and co-founder U-Zyn Chua will serve as CDV’s Chief Technology Officer, per the report. Nicholas Khoo has also joined the VC’s top ranks as an investment partner.

Indeed, CDV has already deployed its first strategic investment in U.S.-based tech and entertainment firm, The Edge of Company. The newly launch VC also has eyes on other startups across Southeast Asia and Europe.

Growing Institutional Crypto Investments

Despite volatility in the cryptocurrency market, a growing trend of institutional investment in blockchain-powered projects has emerged over the past few years.

Back in June 2021, venture capitalist behemoth Andreessen Horowitz announced a massive $2.2 billion for its third crypto fund. Before that, crypto.news reported that the VC giant invested a hefty $45 million in privacy-focused Oasis Labs for its blockchain protocol. 

A recent report from Wall Street Journal also further reinforces the thesis that more institutional investors are interested in crypto. Hedge fund manager Brevan Howard launched a crypto division back in September 2021. The firm also reportedly announced plans to invest in blockchain-powered startups in a bit to drive adoption and support the burgeoning industry.