Singapore-based decentralized finance (DeFi) fintech Cake DeFi has launched a $100 million venture arm to compliment its core business, the company said in a press release on 9 March.
According to the announcement, Cake DeFi Ventures (CDV) will look for investment opportunities in startups across the world, and will primarily focus on the web3, metaverse, non-fungible tokens (NFTs), gaming, and fintech spaces. The goal of CDV is to invest the $100 million into projects that will complement Cake DeFi’s core business and services, which include liquidity mining, staking, and lending of cryptocurrencies. Co-founder and CTO of Cake DeFi, U-Zyn Chua, said in a statement”
“As an extension of our multiple blockchains support and having built up an R&D arm with cryptography, deep tech capability and specialization, investing in companies that bring synergies to Cake DeFi’s core business will allow us to enhance our Web 3 offerings.”
CDV will not only provide projects with funding, but also with insight and connections into the space. It also plans to take a hands-off approach when it come to operational responsibilities and board seats for projects it has invested into. While no details were revealed, the investment arm has already selected the first company to receive its support, a United States-based media startup called The Edge of Company.
The emergence of another crypto-focused investment fund in Singapore is not surprising, considering the increase in Singapore’s crypto-related investments last year. A report from Big Four accounting firm KPMG from Tuesday showed that crypto-related investments in Singapore had reached $1.48 billion in 2021, compared to the $110 million we saw in 2020. This could be attributed to the government establishing a special-purpose acquisition company (SPAC) framework, which enabled fast-growing companies and unicorns to go public in Singapore.