TL;DR
- Binance Labs, the venture capital division of Binance, has been separated from the parent company with a valuation of $10 billion. The Binance brand will be licensed by the venture capital subsidiary.
- Binance Labs, led by co-founder Yi He, is a prolific early-stage backer of crypto projects, predominantly funded by the exchange’s profits. It has invested in around 250 projects to date, and its assets are now worth over $10 billion.
- Despite its independence, Binance Labs’ primary goal remains unchanged: to identify and invest in projects. It is keen on expanding its investments in Web3 initiatives.
Binance Labs, the venture capital division of Binance, which is the largest digital asset exchange in the world, has been discreetly separated with a valuation of $10 billion. This move marks one of the most notable developments in the company since Richard Teng took over as Binance’s new CEO.
Binance Labs, now an independent entity, has severed some ties with the wider group. The Binance brand will be licensed by the venture capital subsidiary. The crypto industry is alert for changes at Binance, especially in the wake of a November plea deal with US agencies that led to a giant $4.3 billion penalty and unseated founder Changpeng Zhao as CEO.
The outfit is led by Yi He, who co-founded Binance alongside Zhao. Binance Labs is a prolific early-stage backer of crypto projects and is predominantly funded by the exchange’s profits. It has invested in around 250 projects to date, including the likes of Sky Mavis, Aptos Labs, LayerZero, Polygon, and The Sandbox. The outfit’s assets are now worth over $10 billion in terms of their value on paper.
The Crypto Industry’s Watchful Eye on Binance’s Recent Changes
Independence will change little for Binance Labs operationally. “Our primary goal is to identify projects and invest in them and this has not changed,” said Binance Labs Investment Director Alex Odagiu. “It’s been our focus for the most part since the inception of Binance Labs, which we started as a team in 2018”.
The autonomous venture capital fund is keen on expanding its investments in Web3 initiatives. Entrepreneurs are invited to submit their applications for financial support via the Binance Labs Season 7 Incubation program before the deadline of April 15, 2024. Yi He, the co-founder of Binance and the leader of Binance Labs, stated that their objective is to back promising startups in their early stages.
The crypto industry will be closely watching the developments at Binance Labs. As it steps into a new phase of independence, the venture capital arm is expected to continue its mission of identifying and investing in promising projects, thereby shaping the future of the crypto industry.
