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Hong Kong Fund Plans to Throw $100M at Crypto Firms

ProDigital Future is particularly seeking China-related companies transitioning to web3

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Hong Kong investment fund ProDigital Future has revealed plans to invest up to $100 million in web3 startups and crypto firms.

The move comes as Hong Kong seeks to become a regional crypto hub in competition with Singapore.

At least $30 million has been secured from investors so far. The fund is led by Ben Ng, a venture partner at Asian private equity firm SAIF Partners, and tech investor Curt Shi.

Sunwah Kingsway Capital Holdings and Golin International Group are among those who joined the fund's first close after a half-year fundraising period.

According to Bloomberg, ProDigital Future plans to target early-stage and developing ventures. The fund is particularly seeking China-related companies transitioning to web3.

Six projects including Hong Kong-based metaverse company GigaSpace have received investment from the fund so far.

“I believe that Hong Kong will continue to have a certain degree of openness and flexibility,” Shi said. “While our portfolio and fund will embrace Hong Kong and its policies, we will continue to have a presence in Australia, Singapore, as well as in Europe and the US.”

Hong Kong's web3 embrace

Hong Kong's regulatory developments have been seen by the industry as a welcoming hand, with both institutional and retail-facing crypto companies eager to set up shop in the city state.

Last month, the Hong Kong Securities and Futures Commission (SFC) laid out a safe path for retail investors to access crypto. Retail customers are required to pass a knowledge assessment or else only be offered access after training is provided.

Read more: Hong Kong Proposes Plan for Retail Access to Crypto

Shi said that whilst investors are still cautious about new crypto projects, fundraising has been "relatively smooth." He added that many Hong Kong families are interested in digital assets and participated in the fundraising.

Just last week, crypto trading and market making firm Auros raised $17 million in a funding round, led by Vivienne Court.

Read more: Auros Completes US$17M Fundraising Round

Global crypto firms have their sites on Hong Kong too. Earlier this week, OKX, the world's second-largest crypto exchange by trading volume, has announced that it will be applying for a virtual asset service provider (VASP) license under the new regulatory regime in Hong Kong.

Read more: OKX Seeks to Become Key Player in Hong Kong's Virtual Asset Industry with Licensing Applications

The move comes after over a year of preparation and organizational design by OKX to fulfil anticipated regulatory requirements from organizational, product, security, and compliance standpoints.

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