By George Ward
Hong Kong is positioning itself as a leading financial technology hub in the Asia-Pacific region. Consequently, a new fund is looking to capitalize on this trend by investing $100 million in digital asset startups in the city.
The ProDigital Future Fund, launched by a Hong Kong-based investment firm, seeks to capitalize on the city’s burgeoning fintech sector by investing in digital asset startups across the Asia-Pacific region. The fund plans to invest in various sectors of digital asset businesses, such as exchanges, wallets, and security token offerings (STOs).
It also plans to provide advisory and other services to the firms.
Raising $100 Million For Digital Asset Startups
A Hong Kong-based investment vehicle, spearheaded by Ben Ng and Curt Shi from SAIF Partners, is seeking $100 million from Venture Capitalists to invest in digital asset startups. Having secured $30 million in funding commitments after half a year of fundraising, the ProDigital Future Fund has attracted the support of Golin International Group Ltd. and Sunwah Kingsway Capital Holdings Ltd.
Hong Kong seeks to attract crypto companies and advocates to reinvigorate its finance sector, which is still affected by the COVID-19 pandemic. This starkly contrasts with the US, which has taken more stringent regulatory measures following the FTX debacle last year, leaving some analysts apprehensive that Hong Kong may take a similar step in the future.
“I comprehend the worries, yet given the intricacy of the crypto economy and existing geopolitical circumstances, nothing is impeccable, “Shi disclosed during an interview. He further revealed that their methodology is to keep on observing how things develop.
Investing In The Future Of China’s Web3 Transition
ProDigital Future’s target audiences are fledgling businesses and startups, particularly tech entities in China transitioning to the Web3 ecosystem. At the time of writing, the fund has invested in six digital asset projects, notably, GigaSpace (from Hong Kong) and One Future Football (an Australian digital sports club).
Investors have been wary of investing capital in new crypto endeavors. However, Shi claimed that fundraising has been “comparatively hassle-free.”
He said a few Chinese family offices investing in Australia and Singapore were also part of it. Shi expressed confidence that Hong Kong would stay open and accommodating to future developments in the crypto and blockchain industry.
In light of this, their investment portfolio and fund will ensure that it conforms with the city and its regulations while also having a presence in Singapore, Australia, Europe, and the United States. Launching the ProDigital Future Fund signifies that the city is serious about becoming a top global fintech hub.
With its focus on digital asset investments, the fund could be essential to the city’s strategy to become the region’s principal financial technology center.