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The Dubai-based venture capital firm said it plans to invest in 100 early-stage Web3 projects, 25 liquid tokens and 10 fund-of-fund allocations.
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Cryptocurrency venture capital firm Sigma Capital has launched a $100 million investment fund, tipping plans to invest in Web3 startups across the United Arab Emirates and globally.
According to the announcement, the capital will be used to invest in early-stage Web3 companies and liquid tokens in the decentralized finance, blockchain infrastructure, metaverse, gaming and real-world asset (RWA) tokenization markets.
The capital will also be used for fund-of-fund allocations, a portfolio diversification strategy that distributes capital to a group of funds.
The fund will be led by Vineet Budki, the former CEO and managing partner of Web3 venture firm Cypher Capital — which invested in various blockchain projects, including Mysten Labs, Sei Network, and Manta Network.
Polygon founder Sandeep Nailwal commented on the investment fund, calling it a testament to the United Arab Emirates’ role as an emerging blockchain hub.
In December, Core DAO executive Andrew Vranjes told Cointelegraph that the UAE has emerged as a launchpad for blockchain projects due to favorable policies and an influx of talent.
The Bitcoin MENA conference in Abu Dhabi attracted 8,000 attendees from 90 countries. Source: Cointelegraph
Related: Brickken secures $2.5M to expand tokenized assets platform in Europe
Crypto VC on the rise
One of the most telling signs that the crypto bull market is in full swing is the surge in venture capital funding. As Cointelegraph reported, crypto- and blockchain-focused VCs deployed $13.6 billion in 2024, accounting for nearly 5% of total VC allocations for the year.
According to Galaxy Research, declining interest rates and greater regulatory clarity in the United States should lead to a 50% surge in crypto VC activity this year.
Galaxy Research expects crypto venture capital funding to increase 50% year-over-year by Q4 2025. Source: Galaxy Research
“Crypto VC fundraising has historically lagged broader crypto market trends, and there will be some amount of ‘catchup’ over the next four quarters,” said Galaxy Research analysts Alex Thorn and Gabe Parker.
Much like Sigma Capital, HashKey Capital CEO Deng Chao identified RWA tokenization as a major theme for 2025. Chao told Cointelegraph he expects to see a major uptick in RWA funding rounds this year.
According to some estimates, the RWA tokenization sector could grow by 50 times in the next five years, potentially reaching $30 trillion.
Related: Financial institutions will drive RWA tokenization’s trillion-dollar growth
This article first appeared at Cointelegraph.com News
