Binance Raises $500 Million to Invest in Web3 As Digital Currency Market Plunges The world's largest cryptocurrency exchange is launching its own venture capital fund.

By Madeline Garfinkle

Binance, the world's largest crypto exchange, has launched its own venture capital fund, Binance Labs, and secured $500 million towards its debut investments. The fund received backing from firms DST Global and Breyer Capital as well as unnamed family offices and corporations, according to CNBC.

Binance Labs intends to use its newly raised capital to invest in Web3 startups. Web3, dubbed by some as "the future of the internet," offers a new version of the web that's more decentralized and is based on blockchain technology.

Related: In For The Long Haul: Binance Founder And CEO Changpeng Zhao Is Going All In For Crypto

The launch of Binance's venture comes when the cryptocurrency industry is struggling. Since hitting all-time highs in November, Bitcoin and other digital currencies have steadily declined, plunging more than 50% since their peaks. Binance Labs is utilizing the plunge in hopes of investing in the next wave of technology. Its investments will be split between pre-seed, early-stage and growth equity, as well as tokens and shares — all with companies created to "drive the growth of the Web3 ecosystem."

The firm also intends to acquire a $500 million stake in Twitter to support Elon Musk's bid to buy it, in hopes of "bringing social media and Web3 together."

Binance's investment initiatives reflect a possible turning point in the crypto market as firms seek the next big thing in tech in the wake of plunging shares and collapse of stablecoin TerraUSD. The launch of Binance Labs comes just a week after venture capital firm Andreessen Horowitz announced a $4.5 billion fund for investment in crypto startups.

Related: As Crypto Prices Continue to Plunge, These Companies Are Preparing to Take Advantage

Wavy Line
Madeline Garfinkle

Entrepreneur Staff

News Writer

Madeline Garfinkle is a News Writer at She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Editor's Pick

A Father Decided to Change When He Was in Prison on His Son's Birthday. Now His Nonprofit Helps Formerly Incarcerated Applicants Land 6-Figure Jobs.
A Teen Turned His Roblox Side Hustle Into a Multimillion-Dollar Company — Now He's Working With Karlie Kloss and Elton John
3 Mundane Tasks You Should Automate to Save Your Brain for the Big Stuff
The Next Time Someone Intimidates You, Here's What You Should Do
5 Ways to Manage Your Mental Health and Regulate Your Nervous System for Sustainable Success

Related Topics

Business News

You May Have Fewer Options to Wade in the Water This Summer as Thousands of Lifeguard Chairs Are Left Unoccupied

A national lifeguard shortage has been on the rise since the COVID-19 pandemic.

Business News

'I Am Just Floored': Woman Discovers She Won $1 Million Lottery Prize While Checking Her Email at Work

Initially, she thought the email was a scam, but went to lottery headquarters and walked away with a six-figure check after taxes.


How I Raised $2 Million Without Knowing Any Venture Capitalists

Without having built a network of VCs, I successfully raised $2 million in six months by using the strategies I outline in this article.

Growing a Business

10 Growth Strategies Every Business Owner Should Know

Effective growth strategies are vital for businesses aiming to achieve sustainable growth and long-term success.

Growing a Business

In a Downturn, It's Not Enough to Have Good Financials — Brand Visibility Is the New Currency.

Visibility has proven to be tied to making more money and being more successful. I've been asked by many founders how they can generate visibility successfully and quickly, so here are my tips.