A Review of 17 Local Crypto Venture Capital Firms in Hong Kong

Author: Zen, PANews

On October 31 last year, the Hong Kong government issued a declaration during the "Hong Kong FinTech Week," expressing its determination to compete as a global virtual asset center and Web3 hub. Compared to Singapore, Hong Kong may have lagged slightly in Web3 policies, but it remains one of the strongest cities in Asia in terms of foundation. In fact, many major projects in the crypto space originated in Hong Kong, and in recent years, numerous new blockchain startups and crypto investment institutions have emerged locally, showcasing Hong Kong's potential to incubate Web3.

Among these, investment institutions leverage their industry resources to connect clients, introduce resources, and provide technical support for enterprises or projects, highlighting their importance in strategic implementation and industry development. PANews has compiled a list of active crypto investment institutions in Hong Kong, detailed below.

Animoca Brands

Animoca Brands is a leader in digital entertainment, blockchain, and gamification, driving digital ownership through NFTs and games, and building an open metaverse. As a typical representative of blockchain gaming companies, Animoca Brands performed well in 2022, announcing three rounds of financing, two of which exceeded $100 million; it also invested in nearly 70 companies, including lending protocol Liqiwid, games Foragers and Fighters, NFT project Wanderers, metaverse project VCORE, and gaming data engine Thirdwave, ranking just behind Coinbase Ventures in activity. In terms of investment layout, gaming has always been at the core of Animoca Brands. In quantity, gaming projects accounted for over 60% of all its investments in 2022.

As a giant in the gaming metaverse, Animoca Brands not only focuses on creating blockchain games but also prefers to invest in various open and digital metaverse platforms. Animoca believes that gamers will drive the adoption of the metaverse, as they understand virtual worlds and goods and are already familiar with the original virtual world experiences of gaming. By the end of 2022, Animoca's portfolio included over 380 companies, with more than 170 investments in NFT-related companies and decentralized projects. These projects help establish an open metaverse, including Axie Infinity, OpenSea, Dapper Labs (NBA Top Shot), Yield Guild Games, Harmony, Alien Worlds, Star Atlas, and more.

HashKey Group

HashKey Capital is a global asset management institution focused on investing in blockchain technology and digital assets, currently managing over $1 billion in assets. As one of the largest and most influential blockchain investment institutions in Asia and one of the earliest institutional investors in Ethereum, HashKey Capital plays a leading role, linking Web2 and Web3, and working with entrepreneurs, investors, communities, and regulators to build a sustainable blockchain ecosystem. The company is headquartered in Hong Kong and has a presence in Singapore, Japan, the United States, and other locations, having invested in over 500 global companies in infrastructure, tools, and applications with significant mass adoption potential.

On January 17 this year, HashKey announced that its third fund, HashKey Fintech Investment Fund III, completed fundraising, reaching a new fund size of $500 million. HashKey Capital's third fund (along with its affiliated companies, collectively referred to as "HashKey Group") received strong support from institutional investors, with the LP lineup consisting of sovereign wealth funds, large corporations, and family offices. The fund aims to discover outstanding crypto and blockchain projects globally while focusing on the growing opportunities in emerging markets.

Kenetic Capital

Kenetic Capital is a Hong Kong-based proprietary trading and venture capital firm focused on digital assets and blockchain-related companies. Its founder, Jehan Chu, began investing in cryptocurrencies in 2013 and has since invested in and supported over 230 projects. Kenetic believes that companies building blockchain solutions in data, infrastructure, enterprise, trade, and finance will become the pillars of next-generation technology, and it began investing in early blockchain and crypto technologies in 2016. Its portfolio includes many well-known crypto projects such as Ethereum, Solana, Algorand, Polkadot, Near, FLare, BlockFi, Alchemy, IoTeX, and more.

In addition to focusing on infrastructure development in the blockchain industry, Jehan Chu, who previously worked at Sotheby's, is also optimistic about the application of NFT technology. Kenetic has invested in NFT projects such as Metakey, NFT and digital asset company Ioconic, NFT marketplace DoinGud, and NFT technology company CXIP Labs.

C Capital

C Capital is a global asset management company managing private equity funds, private credit funds, and blockchain hedge funds. It was co-founded in 2017 by Hong Kong real estate tycoon Cheng Zhigang, Clive Ng, and Ben Cheng. Initially named C Ventures, it was rebranded to C Capital in September 2022. Its Blockchain Market Fund is a fully discretionary long/short hedge fund focused on investing in the blockchain sector, providing a range of cryptocurrency trading strategies for investors through technical analysis, fundamental analysis, and on-chain analysis. According to Bloomberg, C Capital plans to launch a $200 million fund to invest in blockchain assets by the end of 2023 and will also raise another $300 million for private equity and private credit strategies.

C Capital has invested in over 60 companies to date, covering consumer, technology, and blockchain sectors. Its investments in the blockchain and digital asset space include Ethereum infrastructure development company ConsenSys, financial services platform Matrixport, NFT virtual fashion brand RTFKT, and Animoca Brands.

Everest Ventures Group

Everest Ventures Group, abbreviated as EVG, is a blockchain investment bank and incubation institution spun off from Hong Kong private equity/venture capital fund Huitong Capital, aiming to promote the large-scale application of digital assets and blockchain technology. EVG focuses on fintech, DeFi infrastructure, NFTs, GameFi, Web3, and the metaverse.

EVG's portfolio includes numerous well-known projects such as blockchain game and NFT developer Animoca Brands, decentralized metaverse The Sandbox, public chain Flow, and crypto exchange Kraken. In the past year, it has invested in GameFi projects Tiny World, decentralized gaming community Saga, concentrated liquidity DeFi protocol Crema Finance, and metaverse project Matrix World. In addition to investment and financing business, EVG also builds many companies to engage in GameFi, film-related NFTs, and other businesses, with more plans for the metaverse in the future.

Token Bay Capital

Token Bay Capital is an early-stage venture fund that accepts investments from professional investors, focusing on early digital asset and blockchain companies in the Asia-Pacific region. Its founder, Lucy Gazmararian, was a senior leader in PwC's global crypto team, advising entrepreneurs, startups, and financial institutions on crypto and blockchain projects, and assisting several central banks and other regulators in formulating crypto asset policies. Lucy also has a traditional finance background, with over a decade of experience in banking and asset management at Goldman Sachs, Credit Suisse, Schroders, and Kleinwort Benson.

Token Bay Capital invests across the entire digital asset and blockchain space, diversifying across five verticals: infrastructure, financial services, DeFi, metaverse & NFTs, and social media and e-commerce. Currently, Token Bay Capital has disclosed a portfolio of 20 projects, including Yuga Labs, which owns the "BAYC" series, and the NFT and metaverse unicorn Animoca Brands, as well as investments in blockchain security company DWallet Labs, NFT interaction platform Shil.me, decentralized trading platform Soma.Finance, and blockchain data analytics company Merkle Science.

GBV Capital

GBV Capital (Genesis Block Ventures) is a venture fund focused on blockchain technology and digital assets in Asia, and is an investment institution under Genesis Block, primarily operating cryptocurrency over-the-counter trading in Hong Kong. The GBV team supports full-stack collaboration with projects, aiming to facilitate project development by providing assistance through marketing, trading functions, product development, and strategically focused team members as needed.

Since its establishment in 2020, GBV has invested in over 70 companies across multiple verticals, including Layer 2 public chain Boba Network, Layer 2 money market protocol zkLend, DeFi startup Arch, crypto options trading platform SignalPlus, P2E shooting game Cantina Royale, and Web3 creator collaboration platform Joyn. Additionally, GBV acquired OMG Network (formerly OmiseGo), an Ethereum Layer 2 scaling solution under Synqa, at the end of 2020.

Newman Capital

Newman Capital is a full-stack venture capital firm focused on technology investments, blockchain startups, and investments in art and collectibles. Its key investment areas include core infrastructure, decentralized finance, social, and gaming. In April 2022, Newman Capital announced the launch of a $50 million investment fund to help cutting-edge traditional enterprises solidify their positions in the evolving Web3 world. The new fund primarily focuses on three areas: technology investments, Web3 applications, and art and collectibles. According to its official website, Newman’s team has supported over 60 projects, including well-known crypto projects in the blockchain/Web3 space such as NFT unicorn Yuga Labs, crypto exchange Kraken, Ethereum scaling and infrastructure development platform Polygon, and Dapper Labs, as well as early investments in notable internet technology companies like Reddit, SpaceX, and Epic Games.

Chiron Group

Chiron is a venture capital institution focused on supporting global innovation teams, primarily investing in DeFi and NFT projects related to the metaverse. In December 2021, Chiron announced the launch of a new $50 million fund, "Chiron Terra Fund I (CTI)," to support innovative projects built on the Terra ecosystem, including decentralized finance (DeFi), metaverse-related non-fungible token (NFT) platforms, and cross-projects between the two. According to its official information, Chiron can provide support to management teams in talent recruitment, business development, marketing, product design, and strategy, and can leverage resources from its portfolio companies to create synergies and generate value for multiple teams. It has currently invested in over 30 projects, including crypto options trading platform SignalPlus, DeFi protocol DeSyn Protocol, and metaverse project The Kingdom.

MindWorks Capital

MindWorks Capital is a venture capital firm that conducts early and seed investments, seeking to invest in innovative companies in the technology sector, primarily making direct investments in tech companies in China and Southeast Asia. It manages funds from university endowments, global asset management companies, fund-of-funds, family offices, and leading new economy entrepreneurs in Asia. To date, MindWorks has invested in 33 projects, including several blockchain startups such as YGG SEA under the gaming guild YGG, crypto exchange Zipmex, on-chain data monitoring platform PARSIQ, and composite asset protocol Starfish Finance.

Double Peak

Double Peak Group is a Hong Kong family office focused on investments in digital assets and blockchain, deeply involved in the cryptocurrency space since 2017. Double Peak adopts a value investment philosophy and engages in long-term key investment financing rounds and secondary markets at an early stage, with the ultimate vision of bridging cutting-edge decentralized technology between China and international markets. The Double Peak team consists of talents with institutional backgrounds, including investment banking, private equity, venture capital, and entrepreneurship.

The company invests in multiple areas, including asset management, banking and payments, cross-chain platforms, CeFi-DeFi bridging, infrastructure protocols, and investment funds. Double Peak has successfully invested in over 70 companies, including the Australian unicorn startup Immutable X, NFT asset creation platform BreederDAO, mobile RPG NFT game Guild of Guardians, and crypto custodian Hex Trust.

Amber Group

Amber Group is a leading digital financial technology platform, with founders from top Wall Street investment banks such as Morgan Stanley, Goldman Sachs, and Bloomberg. Amber Group operates globally, trading on over 100 electronic trading platforms. Based on rapid business growth and the resource background of its founding team, Amber has secured large-scale financing from top investment institutions. Last February, Amber Group completed a $200 million financing at a valuation of $3 billion, with participation from Temasek, Sequoia China, Pantera Capital, and Tiger Global Management; in December, it completed a $300 million Series C financing led by Fenbushi Capital US, with other crypto-native investors and family offices participating.

In addition to being a trading service provider, Amber Group is also a well-known institutional investor in the primary market. Its investment projects include public chain project NEAR Protocol, decentralized staking protocol Stader Labs, decentralized staking protocol SSV.Network, algorithmic stablecoin project Sperax, Aurora native lending protocol Aurigami, lightweight public chain Mina, Japanese blockchain game startup double jump.tokyo, and Web3 infrastructure company EthSign.

IOSG Ventures

IOSG Ventures is an investment and research company focused on the blockchain/crypto space, investing in various blockchain verticals, including infrastructure, DeFi, GameFi, and SocialFi. Since its establishment in 2017, IOSG has invested in nearly 100 projects. According to its official website, when investing, it emphasizes the project's breakthrough and innovation, the aspirations and resilience of the founders and teams, operational excellence, and community building.

In its early days, IOSG primarily focused on investing in Layer 1 projects and became one of the major investors in Polkadot and Near Protocol. It has invested in many well-known projects, including 0x, 1inch.exchange, and DeFi Alliance in the DeFi space, and in Layer-1 projects such as Conflux, Cosmos, and Mina Protocol.

CyberPort

CyberPort is an innovative digital community with over 1,900 startups and tech companies, one of Hong Kong's largest Web3 communities, dedicated to promoting the development of fintech, smart living, and emerging technologies such as artificial intelligence, big data, and blockchain. It is managed by the Hong Kong Cyberport Management Company, which is wholly owned by the Hong Kong SAR government. CyberPort has launched an investment startup fund (CMF) with a total investment of HKD 400 million to provide seed investments and Series A or later financing to tech startups. CyberPort also has a Creative Micro Fund (CCMF) aimed at supporting the growth of innovative and creative digital tech ideas and early-stage startups, with selected projects receiving a total of HKD 100,000 in grants in three phases after independent review.

In early January this year, CyberPort announced the establishment of the "Web3 Hub@Cyberport," aimed at attracting and supporting global Web3 innovators and entrepreneurs, continuously enhancing talent support and resource investment for the development of emerging industries in Hong Kong, and improving Hong Kong's development advantages. Currently, CyberPort has invested in few blockchain projects, such as digital asset custodian Hex Trust, but with policy support and favorable conditions, more blockchain tech companies may emerge in the future.

Cultur3 Capital

Cultur3 Capital is a venture capital firm focused on Web3. Cultur3 believes that tokens provide motivation for people, and DAOs are the future of business, focusing on investments related to NFTs, DAOs, and Web3 communities. Since its establishment in 2020, it has invested in over 30 companies. Its investment projects include Sky Mavis, the game studio behind Axie Infinity, crypto art NFT platform KnownOrigin, NFT minting platform Nameless, NFT asset management platform NFT Bank, Web3 version of LinkedIn Govrn, Coordinape, which enables DAOs to fairly distribute compensation to contributors, and metaverse platform Portals.

Cell Rising Capital

Cell Rising Capital is a venture capital fund focused on cutting-edge technology and artificial intelligence, dedicated to investing globally in promising startups engaged in frontier technology research, such as AI robotics, AI manufacturing, decentralized processing technology, insurtech, and fintech, to help companies enhance their industry competitiveness. Cell Rising does not merely invest in companies seeking financing; its entrepreneurial advisors and expert team can provide professional advice and technical support to help entrepreneurs grow rapidly and achieve scale expansion. Cell Rising has made few investments in the crypto space, with disclosed investments including digital asset custodian Hex Trust, and it has participated in early rounds for Animoca Brands and digital asset exchange Archax, later exiting those investments.

QBN Capital

QBN Capital is a Hong Kong-based venture capital fund focused on technology, primarily investing in early and growth-stage fintech companies in Asia and Europe. Its investment areas include big data analytics, artificial intelligence, biometrics and digital identity, fintech, cybersecurity, and health. QBN's investments in the crypto space focus on CeFi and DeFi. In 2021, QBN led the investment in digital asset custodian Hex Trust, ultimately helping it complete a $6 million Series A financing. Additionally, QBN has invested in Luxembourg's digital securities platform DEFYCA, Hong Kong digital asset exchange HKbitEX, and Swiss digital asset service company CryptoFinanceAG.