Singapore-based decentralised finance services provider Cake DeFi launched a venture capital unit called Cake DeFi Ventures (CDV) on Wednesday capitalised to the tune of $100m.
Founded in 2019, Cake DeFi provides services such as cryptocurrency trading and liquidity mining as well as the staking and lending of cryptocurrencies. It boasts over $1bn in managed customer assets and 500,000 registered users, following what it says was a tenfold increase in confirmed users over the course of 2021.
Cake Defi is providing the initial capital for Cake DeFi Ventures, which will look to deploy the cash globally over the next two years through investments companies focusing on technologies such as gaming, esports, Web3, the metaverse and non-fungible tokens (NFTs).
CDV will not be looking to execute control over portfolio companies’ operations or board, opting for a more hands-off approach.
Portfolio companies will have access to a range of Cake DeFi’s products and resources across the blockchain industry. The fund has already made its first investment, in US-based, NFT-focused media, events and technology startup The Edge of Company.
Cake DeFi’s co-founder and chief executive, Julian Hosp, is leading CDV alongside the company’s chief technology officer U-Zyn Chua. Hosp said: “By launching Cake DeFi Ventures, we strive towards bringing cryptocurrency and blockchain capabilities to the world.
“With Cake’s current status as Singapore’s and Southeast Asia’s fastest-growing platform, projects which we invest in can expect to receive strong support scaling globally.”
The launch follows similar vehicles that have been set up to invest in crypto, Web3 and blockchain-based gaming companies in recent months, such as cryptocurrency marketplace FTX’s $2bn FTX Ventures unit and the $200m fund established by blockchain game developer Animoca Brands and digital currency exchange Binance.
