Cake DeFi Ventures will invest in crypto businesses operating in the Web3, Metaverse, NFT, gaming, esports, and fintech sectors that complement the company’s core business.
Cake DeFi, a Singapore-based provider of decentralised finance (DeFi) services, announced the formation of a $100 million investment arm focused on Web3, gaming, nonfungible tokens (NFT), and other crypto activities.
Cake DeFi Ventures (CDV), the company’s newly created $100 million venture arm, will invest in crypto businesses that complement the company’s core business. According to Cake DeFi, the venture capital business “will focus on investing in technology firms spanning Web3, the metaverse, the next-generation technology space, gaming, esports, and fintech.”
Cake DeFi’s principal array of services includes cryptocurrency liquidity mining, staking, and lending — all of which are geared toward maximising returns on existing crypto holdings. Along with receiving financing from CDV, the announcement stated:
“Portfolio firms gain access to a diverse range of Cake products, connections, users, resources, and experience across the global blockchain ecosystem.”
Cake DeFi co-founder and chief technical officer U-Zyn Chua stated that investing in early-stage cryptocurrency firms “would enable us to strengthen our Web3 capabilities.” Along with urging appropriate businesses to share their project details with CDV, the company has opened doors to other venture capital firms and investors interested in co-investment or strategic collaborations.
According to a new analysis from Big Four accounting company KPMG, Singapore’s crypto-related investments increased tenfold last year, from $110 million in 2020 to $1.48 billion in 2021.
The significant surge in crypto investments is mostly a result of government initiatives to encourage the capital market. Notably, the Singapore government devised a structure for special-purpose acquisition companies (SPACs) to go public, allowing fast-growing corporations and unicorns to do so.
Additionally, the government took significant measures this year to regulate speculative digital assets.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.