Gulf-based private equity firm Sigma Capital has launched a $100 million fund called “Sigma Capital Fund I” to invest in web3 technologies.
The fund will focus on DeFi, blockchain infrastructure, real-world asset tokenization, gaming, and the metaverse.
The firm, recognized for supporting early-stage startups, plans to invest in 100 emerging projects, 25 liquid tokens, and 10 fund-of-funds over the next three years. Additionally, it aims to implement high-yield decentralized finance strategies to optimize returns while investing in crypto venture funds to increase its exposure to the rapidly evolving web3 landscape.
Sigma Capital CEO and Managing Partner Vineet Budki, who will spearhead the fund, highlighted the UAE’s role as a conducive environment for web3 innovation.
“We envision a digital economy that is more open, inclusive, and innovative. The UAE’s dynamic economy and forward-thinking regulatory environment provide the perfect backdrop for Web3’s next wave of innovation. Sigma Capital Fund I will empower startups with capital, equip them with access to Sigma Capital’s extensive network and investment expertise, and enable them to thrive in the rapidly evolving Web3 landscape”.
He said.
The firm plans to collaborate with web3 hubs in ten global cities, utilizing local expertise and market insights to identify promising startups. As part of its strategy, the fund will actively manage a portfolio of liquid tokens, capitalizing on market opportunities to deliver consistent returns, according to a press release issued on January 14.
Building on its growing reputation as a global cryptocurrency hub, the UAE has achieved a significant milestone by accumulating $40 billion in Bitcoin holdings, supported by strategic planning and innovative regulations. From July 2023 to June 2024, the country processed $34 billion in cryptocurrency transactions, marking a 42% increase from the previous year. Bitcoin represented 19% of transactions during this period, while stablecoins made up 51%.
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