In an exciting move, Dubai-based venture capital firm Sigma Capital has launched a $100 million fund aimed at nurturing 100 emerging projects in the Web3 space.
This initiative is designed to create a varied investment portfolio that not only includes 25 liquid tokens but also encompasses investments in 10 additional funds.
Investment Focus Areas
Sigma Capital is especially keen on targeting early-stage businesses across several pivotal sectors.
These areas include decentralized finance (DeFi), blockchain infrastructure, the metaverse, gaming, and the tokenization of real-world assets (RWA).
By adopting a fund-of-funds strategy, the firm intends to spread its investments widely, enhancing its financial stability.
Leadership and Market Position
At the helm of this initiative is Vineet Budki, who formerly served as the CEO and managing partner of Cypher Capital.
His previous experience includes significant investments in notable blockchain companies like Mysten Labs, Sei Network, and Manta Network.
Sandeep Nailwal, co-founder of Polygon, has remarked on how this new fund marks a significant milestone for the United Arab Emirates, reinforcing its position as a central hub for blockchain innovation.
Meanwhile, Andrew Vranjes from Blockdaemon pointed out that the UAE is rapidly becoming an attractive landscape for blockchain projects, thanks to its supportive regulations and the influx of skilled professionals.
Venture Capital Trends
Recent trends in venture capital highlight a strong recovery in the crypto market.
In 2024, crypto-focused venture firms poured $13.6 billion into various projects, accounting for nearly 5% of the total venture capital investment for the year.
Galaxy Research forecasts that as interest rates decline and regulatory environments become clearer in the United States, crypto venture capital activities could surge by 50% in the coming year.
Of particular interest is the expected boom in funding for the RWA tokenization sector, projected to grow significantly over the next five years, with estimates suggesting it could reach a staggering $30 trillion.
The landscape of investment is evolving rapidly, and Sigma Capital stands at the forefront of this transformative wave.
Source: Cointelegraph
