UAE’s Sigma Capital debuts $100m fund targeting metaverse and blockchain infrastructure

Gulf-based Sigma Capital has introduced a $100 million fund to invest in web3 sectors, from blockchain infrastructure to the metaverse.

Sigma Capital, a private equity firm specializing in early-stage startups, has announced the launch of a $100 million fund to drive web3 innovation. The so-called “Sigma Capital Fund I” will focus on projects in decentralized finance, blockchain infrastructure, real-world asset tokenization, gaming, and even the metaverse, the firm said in a Jan. 14 press release.

“In addition, and as part of the fund, Sigma Capital will actively manage a portfolio of liquid tokens, seizing market opportunities to generate consistent returns.”

Sigma Capital

With the fund, the firm says it plans to invest in 100 early-stage startups, 25 liquid tokens, and 10 fund-of-funds over the next three years. It will also use high-yield strategies in decentralized finance to “optimize the fund’s portfolio performance and will invest in high growth crypto venture funds that broaden the fund’s exposure to emerging web3 innovations.”

Vineet Budki, the firm’s chief executive and managing partner, will lead the fund. Commenting on the initiative, Budki said the firm envisions a digital economy “that is more open, inclusive, and innovative.” He added that the UAE’s economy and regulatory environment “provide the perfect backdrop for web3’s next wave of innovation.”

The firm hasn’t detailed how it will choose startups but plans to work with web3 hubs in 10 cities worldwide to offer market insights and support, the press release reads.