Hong Kong Establishes $100 Mln-Fund To Support Startups

As Hong Kong attempts to be a global crypto hub, a new Hong Kong-based fund has been established by local investors aiming to raise $100 million this year to support Web3 startups, according to Bloomberg.

The new fund, named ProDigital Future, has completed its half-year fundraising period and secured at least $30 million in funding commitments. It is being led by Curt Shi, a long-time tech investor, and Ben Ng, a partner at Hong Kong-based equity firm SAIF Partners.

Companies like Golin International Group and Sunwah Kingsway Capital Holdings have already contributed to the fund.

Shi told Bloomberg: “ProDigital Future will target early-stage and developing ventures, particularly tech companies with ties to China transitioning into Web3, which proponents often describe as a decentralized internet that runs on public blockchains.”

Shi pointed out that the fund intends to exist in Singapore, Australia, Europe, and the US, adding that the fund had invested in six digital-asset projects, including Hong Kong-based metaverse company GigaSpace and Australia-based digital sports club One Future Football.

Earlier a report by Cointelegraph said Chinese banks became more interested in tapping into the crypto sector by offering services to crypto firms in Hong Kong despite the crypto ban on China’s mainland.

Chinese state-owned banks in Hong Kong, such as Bank of China Ltd., Shanghai Pudong Development Bank, and the Bank of Communications Co., have already started offering banking services to crypto firms in Hong Kong or inquired with crypto companies.

The government of Hong Kong took steps toward its participation in the global crypto industry by introducing its own bill to regulate crypto in October 2022. On February 2023, Hong Kong’s Securities and Futures Commission released a proposal for a licensing regime for cryptocurrency exchanges, which is set to take effect in June this year.