C Capital, a VC agency backed by Hong Kong billionaire businessman Adrian Cheng, announced its plan to raise $200 million to spend money on crypto belongings. The transfer comes because the agency hopes that crypto costs are bottoming out and betting on a powerful rebound sooner or later.
C Capital Hopes to Take Benefit of Depressed Crypto Costs
C Capital, a enterprise capital (VC) and personal fairness (PE) agency based by Hong Kong billionaire Adrian Cheng, mentioned it intends to safe $200 million in funding to purchase blockchain belongings over the next 18 months. The agency plans to boost a further $300 million to spend money on credit score and personal fairness, it mentioned.
The agency’s new funds come because it hopes to capitalize on the rebound in crypto costs sooner or later, which have been battered because of the present macro atmosphere involving record-high inflation and tight financial coverage by world central banks. As such, C Capital believes that crypto costs are at present bottoming out and that they are going to get well after a number of months, mentioned the agency’s different co-founder, CEO, and president, Ben Cheng.
“When persons are on protection, we’re on the offense,” Cheng informed Bloomberg. The sort of atmosphere traditionally “will yield the perfect outcome. After one other 6 to 9 months, it can come again.”
C Capital already poured roughly $1 billion into non-public firms, crypto belongings, and credit. The agency’s hedge fund technique revolves round crypto buying and selling after it declined backing from angel funds and companies throughout its seed stage resulting from their elevated valuations and restricted upsides, Cheng added.
Based in 2017, C Capital has backed over 60 companies up to now, together with cellphone display screen protector maker CASETiFY and blockchain agency Animoca Manufacturers, which additionally raised $100 million in a current funding spherical.
Be part of our Telegram group and by no means miss a breaking digital asset story.
C Capital’s Crypto Investments Elevated By 40% within the First Half of 2022
C Capital’s recent fundraising rounds come within the midst of a tough bear market that has pushed down crypto costs to multi-year lows. Bitcoin and Ether have plunged more than 50% up to now six months as buyers steer clear from danger belongings resulting from sky-high inflation and large interest rate hikes.
Nonetheless, Cheng mentioned the agency’s present crypto investments grew by 40% within the first half of 2022, after doubling its 2021 returns. He added that personal fairness and credit score occupy about 40% of the agency’s capital, whereas roughly 20% is allotted to the hedge fund belongings.
C Capital hasn’t been considerably affected by the property crisis in China, mentioned Cheng, because the agency primarily invests in landmark actual property belongings in top-notch places. The disaster has resulted in nationwide boycotts in China earlier this yr, driving world buyers away from the nation’s actual property sector.
Finance is altering.
Learn the way, with 5 Minute Finance.
A weekly publication that covers the massive tendencies in FinTech and Decentralized Finance.
You’re properly in your method to being within the know.
Do you consider that crypto costs are bottoming out in the intervening time? Tell us within the feedback beneath.
Concerning the writer
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the College of Michigan, and an MBA from the College of Chicago Sales space College of Enterprise. Tim served as a Senior Affiliate on the funding workforce at RW Baird’s US Non-public Fairness division, and can be the co-founder of Protecting Applied sciences Capital, an funding agency specializing in sensing, safety and management options.