Whampoa Group plans to set up a Venture Capital fund and crypto hedge fund to invest in digital assets. According to initial estimates, the company intends to allocate $100 million.
$100 million venture capital fund
The group has earmarked $100 million for venture funds while planning to raise $50 million for crypto hedge funds. The unit has established a new organization called Whampoa Digital, which aims to attract third-party capital to invest in the digital asset market.
Media reports say Whampoa Group’s multi-pronged investment strategy includes a $100 million private market asset fund and a $50 million public market hedge fund.
The private venture capital fund is likely to launch in the next quarter and will invest in early-stage startups on Web 3. After that, Whampoa Digital will increase the size of the fund to expand the investment scale.
Shawn Chan, CEO of Whampoa Group stated that:
“We think there is great hope in the crypto space. The venture capital fund will help us expand our footprint in this area”
He added that the proposed cryptocurrency venture fund has received positive feedback from Asian tech companies and business groups. High internet penetration and demographics promise mass adoption of Web3 products and services in Southeast Asia.
Whampoa Group is a multifamily investment company co-founded by Amy Lee and Lee Han Shih. Both belonged to the extended family of Lee Kuan Yew, who served as the city’s first Prime Minister and was in power from 1959 to 1990.
The group participated in a $500 million fund announced by Binance Labs in June this year to promote the adoption of Web3 and blockchain technology. Its portfolio includes about 200 companies.
Besides using remittances and the entertainment industry, Web 3 startups in the DeFi space have long-term growth potential, said Aureole Foong, senior partner at Whampoa Group.
Many investment funds pour into digital assets
In August, UK-based asset management firm Brevan Howard announced a $1 billion cryptocurrency hedge fund. In a recent filing with the U.S. SEC, the company provided details about the $210 million it has raised through its two subsidiaries.
A study by PricewaterhouseCooper (PwC) in June said that traditional hedge funds do not appear to be seriously affected by the cryptocurrency market crash as they continue to invest in such products and assets. PwC’s 4th Annual Global Crypto Fund Report revealed that 38% of traditional hedge funds have invested in digital assets, up 17% from the previous year.
Additionally, 2/3 of the crypto investors participating in the survey are planning to increase their investments by the end of 2022.