Hong Kong’s CMCC Global Launches Titan Fund, Investing $100M with a Focus on Blockchain Startups
Former NFL quarterback Tom Brady received $55 million for endorsing FTX before its collapse, losing $30 million post-collapse; a cautionary tale about celebrity endorsements in crypto.
- Titan Fund, initiated by CMCC Global, sets its sights on early-stage startups, concentrating on blockchain, gaming, metaverse, and NFT verticals.
- Investment Approach: The fund will predominantly direct its investments toward equity in blockchain companies rather than digital assets.
- Block.one has committed as the anchor investor, contributing $50 million.
CMCC Global, a blockchain-oriented venture capital firm backed by Hong Kong billionaire Richard Li, has launched the Titan Fund, aiming to channel support toward entrepreneurs forging paths in the blockchain industry. The fund is particularly attuned to startups involved in blockchain infrastructure, fintech, and consumer applications in domains like gaming, the metaverse, and NFTs.
Alongside Block.one’s substantial pledge, other significant investors include Richard Li’s Pacific Century Group, Hong Kong’s Jebsen Capital, Winklevoss Capital, and Yat Siu from Animoca Brands. The Titan Fund is opting for a strategy that veers toward equity investments in blockchain entities rather than putting capital into digital assets. Charles Morris and Martin Baumann, CMCC Global’s co-founders, will jointly manage the fund. State Street will administer the fund, with EY serving as the auditor.
— Blockworks (@Blockworks_) October 5, 2023
Initial Investments and Portfolio
- The Titan Fund has actively invested in various ventures, including Mocaverse (an NFT project by Animoca Brands) and Terminal 3, a company based in Hong Kong focusing on blockchain-powered digital identity solutions.
- Internationally, investments have been directed toward Informal Systems (co-founded by crypto expert Ethan Buchman), KickzMeta, Mooncourt, and a team from Y-combinator, focusing on tokenization innovations.
Context and Industry Scenario
Hong Kong recently introduced a regulatory licensing program for digital asset operators, sparking increased interest from various industry players, notably cryptocurrency exchanges. Despite this, it’s notable that cryptocurrency transaction volumes in the region saw a decline of about $6 billion between July 2022 and June 2023 compared to the previous fiscal year, following a challenging period for the crypto industry. Hong Kong also witnessed a dip in its position in Chainalysis’ most recent global crypto adoption ranking.
On October 5, 2023, Blockworks reported a significant investment by CMCC Global, a blockchain-centric venture capital firm supported by Hong Kong’s billionaire, Richard Li. This move is geared towards nurturing entrepreneurs forming companies within the blockchain sector.