Bitcoin startups are due to see a windfall in investment after multibillion-dollar Chinese investment firm Huiyin Group announced the launch of its bitcoin- and blockchain-specific subsidiary fund, Huiyin Blockchain Ventures (HBV).
As stated on its website, the new subsidiary fund will partner “with innovative start-ups and entrepreneurs to help them grow and define the future of the blockchain economy”.
The fund will look toward investing $20 million in bitcoin and blockchain companies over the course of 2016. HBV will be managed by James Wo, who is the son of the founder of the Huiyin Group.
Notable investments have already been made through the fund. Leading Indian bitcoin exchange Unocoin is an example, as is bitcoin-based online marketplace Purse.io. Purse CEO Andrew Lee will also take up the official role as an advisor to the multimillion-dollar subsidiary fund.
In statements, Wo addressed lucrative possibilities due to growing appetite for bitcoin in China while adding that the fund will look to invest in startups around the world.
We are seeking to invest into bitcoin-related companies to help enrich the industry, as we are seeing a large opportunity for return on our investment. As the bitcoin industry continually matures, the use of bitcoin will continue to grow and proliferate in China, as well as the rest of the world. HBV intends to be at the forefront of this technology as it continues to gain traction globally.
The foray into the bitcoin industry for the Huiyin Group comes at a time when China accounts for a significant majority of the world’s bitcoin trading. Established in 2001, the family-owned investment firm has predominantly invested in industries such as energy, agriculture, tourism, food and beverages, among others.
Interest in bitcoin companies from Asian investors has been on the rise in recent times. Prominent industry startup Circle, one of the best-funded startups in the bitcoin space recently raised $60 million in a round of funding from investors in China, toward the establishment of ‘Circle China’, to be based out of Beijing. Major bitcoin exchange and wallet provider Coinbase raised $10.5 million in July 2016 in a funding round led by Japan’s largest banking corporation, the Bank of Tokyo-Mitsubishi UFJ, with the aim to expand its exchange into Japan and Asia.
As big bitcoin companies continue to court investment opportunities, the Huiyin Group’s foray into the sector is certain to benefit smaller promising bitcoin startups.
Image from HBV and Shutterstock.
Last modified: June 10, 2020 10:43 PM UTC