Cake DeFi launches $100M venture arm for Web3, gaming and fintech initiatives

Singapore-based decentralized financial (DeFi) services company Cake DeFi has announced the launch of a $100 million venture arm that aims to act as accelerators for Web3, gaming, non-fungible tokens (NFT) and other crypto initiatives.

The recently launched $100 million venture arm, Cake DeFi Ventures (CDV), will fund crypto startups that complement the company’s core businesses. According to Cake DeFi, the venture firm will “focus on investments in tech startups in Web3, the metaverse, the NFT space, gaming, esports and fintech spaces.”

Cake DeFi’s primary suite of services includes liquidity mining, staking and lending of cryptocurrencies – aiming to generate high returns from existing crypto holdings. In addition to receiving funding from CDV, the announcement read:

“Wallet companies have the opportunity to access numerous Cake products, connections, users, resources and expertise within the global blockchain industry.”

U-Zyn Chua, co-founder and chief technology officer of Cake DeFi, said investing in early-stage crypto startups “will allow us to improve our Web3 offering.” In addition to advising relevant startups to share their project details with CDV, the company has also opened doors to other VC firms and investors for co-investment opportunities or strategic partnerships.

Related: Singapore Saw 13x Jump in Crypto Investments in 2021: KPMG

A new report from Big Four accounting firm KPMG highlighted a 10x increase in Singapore’s crypto-related investment last year – from $110 million in 2020 to $1.48 billion in 2021.

As Coin-Crypto reported, the substantial increase in crypto investment is mainly due to active government efforts to stimulate the capital market. Most notably, the Singapore government has set up a special-purpose acquisition company (SPAC) listing, allowing high-growth companies and unicorns to go public.

In addition, the government has also taken proactive measures this year to regulate speculative digital assets.

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