Despite the ongoing crypto winter, which has affected many companies in the cool Web3 space, investments continue to flow into the space.
On January 17, Hong Kong-based global asset manager HashKey Capital announced the closing of a $500 million investment round for FinTech Investment III.
According to the company, Fund III will be used to invest in infrastructure, tools and applications that will help drive mass adoption of blockchain and crypto technologies.
Synergy in the Web3 space is a key factor in what keeps investors coming back for more, said Xiao Xiao, chief investment officer at HashKey Capital.
“Web3 is growing too fast to ignore. Many traditional institutions and Internet giants are interested in cryptocurrency. Some are learning to participate in this paradigm shift.”
Xiao said that financial institutions can look at cryptocurrencies as another asset class to diversify their portfolio. Likewise, he explained that investing in a fund makes for an easy introduction to the Web3 space.
According to the chief investment officer, the crypto winter has also seen a “major shift” in the type of investor entry into the space.
“As more and more institutional investors join, investment decisions are based on long-term value and return rather than short-term goals.
Founded in 2018, HashKey Capital has managed over $1 billion in client assets and invested in some of the largest players in the industry. This includes projects like Animoca Brands, Polygon, Moonbeam, Blockdaemon, and others.
Xiao said that when it comes to short-term investments, those who create projects with real-world use cases are on everyone’s radar.
In recent years, the infrastructure layer has undergone major innovations. This layer includes interoperability, privacy, and data availability, among others. However, there have not been many real adoptions.
Thus, the middle layer, which houses the infrastructure in real use cases, can be considered very important. And that kind of middle class has to be ‘produced’ and easy to use.”
By Savannah Fortis