Huobi introduces VC subsidiary with $100m backing

Seychelles-based blockchain technology firm Huobi Group has launched a subsidiary aimed at growing its venture investment portfolio.

Huobi Ventures will be a wholly-owned subsidiary that will look at growing the wider company’s venture investment portfolio and support a range of blockchain projects through long-term investments.

Huobi’s new venture arm has secured $100m from its parent company that will be used to find early-stage blockchain and decentralised finance projects over the next three years. The VC will also be leveraged to make strategic acquisitions to expand the company’s offerings.

The establishment of Huobi Ventures will bring together several existing investment arms, including Huobi Capital, Huobi DeFi Labs and Huobi Eco Fund into one single entity. Huobi has to date invested over $69m in hundreds of blockchain-based projects and has received a return and balance on hand of around $215m.

According to Huobi, the launch of its venture arm expands the company’s focus not just on venture capital but also on corporate mergers and acquisitions.

The company noted it will also be establishing a $10m non-fungible token (NFT) fund. A non-fungible token (NFT) is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable. The new fund will invest in NFT collectables and projects including crypto-gamification, mining and marketplaces.

Established in 2013, Huobi operates in the areas of public blockchains, wallets, digital assets trading, mining pools, proprietary investments, digital asset research and incubation.

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