Singapore’s Whampoa Group Announces $100M Venture Capital Fund for Crypto Investments

Singaporean asset manager Whampoa Group plans to establish a venture capital fund and a crypto hedge fund for investments in digital assets.

In initial estimates, the company intends to allocate $100 million.

$100 million venture capital fund

The group has earmarked $100 million for the venture capital fund as it plans to raise $50 million for the crypto hedge fund. He created a new entity called Whampoa Digital, which aims to attract third-party capital to invest in the digital asset market.

The Whampoa Group’s multi-pronged investment strategy includes a $100 million private market asset fund and a $50 million public market hedge fund, media reports said.

The private venture capital fund, which is expected to launch in the next quarter, will invest in early stage start-ups in Web 3. Subsequently, Whampoa Digital will increase the size of the fund to increase investments.

“We believe there is great conviction in this space. The venture capital fund will help us expand our footprint in this space,” said Shawn Chan, CEO of Whampoa Group. Reuters.

He further added that the proposed venture capital fund has received encouraging responses from Asian technology companies and business groups. High Internet penetration and demographics promise massive adoption of Web3 products and services in Southeast Asia, Shan explained.

Whampoa Group

Whampoa Group is a multi-family investment company co-founded by Amy Lee and Lee Han Shih. Both belong to the extended family of Lee Kuan Yew, who served as the city-state’s first prime minister and remained in power from 1959 to 1990.

The group had participated in a $500 million fund announced by Binance Labs in June this year to drive the adoption of Web3 and blockchain technology. Its investment portfolio includes approximately 200 companies.

Besides use in remittances and the entertainment industry, Web 3 start-ups in Defi have long-term growth potential, said Aureole Foong, Senior Partner at Whampoa Group.

More funds are turning to digital assets

In August, UK-based asset management firm Brevan Howard announced a billion-dollar crypto hedge fund. In a recent US SEC filing, the company provided details of the $210 million it raised through two sub-entities.

A PricewaterhouseCooper (PwC) study in June said that traditional hedge funds do not seem discouraged by a crypto market crash as they continue to invest in such products and assets. The 4th annual report of PwC’s Global Crypto Fund found that 38% of traditional hedge funds were already investing in digital assets, an increase of 17% from the previous year.

Moreover, two-thirds of crypto investors who were part of the survey planned to increase their investments by the end of 2022.