Hong Kong-Based Fund to Raise US$100M for Digital Asset Startups

A Hong Kong based fund is planning to raise US$100 million this year to invest in digital asset startups, according to a Bloomberg report on Mar. 30, 2023.

The ProDigital Future Fund, led by Ben Ng of SAIF Partners and tech investor Curt Shi, has already secured at least US$30 million in funding commitments. Investors include Sunwah Kingsway Capital Holdings Ltd and Golin International Group Ltd.

Hong Kong is aggressively courting crypto companies and talent in an effort to become a regional fintech hub. The city's support for crypto exchanges contrasts with U.S regulatory scrutiny, which has increased following the collapse of FTX last year. 

ProDigital Future Fund will focus on early-stage and developing ventures, particularly tech companies transitioning into Web3, a ‘decentralised internet’ that runs on public blockchains. So far, the fund has invested in six digital-asset projects, including Hong Kong-based metaverse company GigaSpace, and Australia-based digital sports club One Future Football.

Despite investor caution about deploying capital into new crypto projects, fundraising for ProDigital Future Fund has been "relatively smooth," according to Shi. Many Hong Kong families interested in the digital economy have participated, along with some Chinese family offices investing in Australia and Singapore.

"I believe that Hong Kong will continue to have a certain degree of openness and flexibility," Shi was quoted as saying. "While our portfolio and fund will embrace Hong Kong and its policies, we will continue to have a presence in Australia, Singapore, as well as in Europe and the US."

As Hong Kong seeks to maintain its position as a global financial centre, the Hong Kong Web3 Fund is expected to play a key role in driving innovation and growth in the local fintech ecosystem.