ZURICH: SBI Group, Sygnum and Azimut Group announced today the launch of a venture capital fund of up to USD 75 million based in Singapore, which will invest in start-up companies in the digital asset sector.

This new fund, incorporated as a Variable Capital Company, brings together the collective digital assets experience and leadership of the three founding partners to accelerate the growth of promising companies in this sector, while providing qualifying investors with unrivalled access to the fast-growing digital asset economy.

With SBI Ven Capital as the primary fund manager, the fund’s investment strategy will primarily focus on Pre-Series A and Series A companies developing blockchain/distributed ledger technology (DLT) infrastructure, decentralised finance (DeFi) solutions and regulatory technology tools. These focus areas reflect the investment themes that have emerged across the digital asset economy:

1. Latest innovations in digital asset ecosystems will play a key role in the future across a wide variety of sectors

2. The digital asset and tokenized securities market opportunity is set to grow significantly, with up to 10% of global GDP projected to be stored and transacted using DLT infrastructure by 2027

3. The demand for regulatory technology tools by digital asset service providers and clients will rise significantly, as regulators increasingly tighten their oversight of this sector

The venture capital fund is poised to take advantage of significant venture capital inflows into the industry, which amounts to 6% of all global venture capital funding year-to-date, up from slightly over 1% this time last year.

As of H1 2021, over USD 17 billion of investments were made into blockchain/DLT and cryptocurrency companies globally^[3] – more than five times that of 2019 – with the number of blockchain-related venture capital deals in Europe and the United States registering the highest growth rate among all technology deals closed in these markets. Seven of the 10 largest blockchain/DLT and cryptocurrency funding rounds of all time closed this year, highlighting the exponential growth trajectory that this sector has embarked on.

CEO and Managing Director of SBI Ven Capital, Ryosuke Hayashi, said: “DLT and digital assets are at the inflection point of mainstream adoption, and they have the potential to reduce inefficiencies and unlock new capabilities across several sectors, such as financial services and supply chain management. Amidst this backdrop, we are excited to launch this latest venture capital focused fund offering with our partners, Sygnum and Azimut. The venture capital fund enables us to bring our expertise and networks in the sector to accelerate the growth of promising digital assets companies and to shape the future of financial services.”

Co-Founder and CEO Singapore of Sygnum, Gerald Goh, said: “We are witnessing several innovative solutions emerging from digital asset companies, especially in decentralised applications, regulatory technology, digital exchanges, and tokenization. These solutions have the potential to facilitate trusted and secure transmission of information and value, empower businesses to access untapped pools of capital at lower cost, and democratise financial inclusion. Through this fund, we are excited to bring like-minded investors and entrepreneurs together to collectively bring these solutions to market.”

Co-CEO and Global Head of Asset Management of Azimut Group, Giorgio Medda, said: “Blockchain technology is set to reshape the asset management ecosystem by enabling new financial solutions and tools across a broad scope of applications which have the potential to redefine existing engagement models with clients and service providers. In that regard, we are very pleased to enter this partnership with SBI Group and Sygnum for the launch of this new and exciting fund, which will provide client portfolios exposure to this new technology, while remaining broadly diversified across private markets and global investment opportunities.