Sino Global Capital, a Chinese cryptocurrency venture capital firm founded by Matthew Graham, has announced the establishment of a $200 million fund with FTX as a backer.
Sino Global told The Block exclusively on Monday that Liquid Value Fund I is closed-ended. That implies it has a $200 million hard cap. However, according to Graham, a significant portion of that sum has already been pledged by partners such as FTX.
“We are excited to support the launch of Sino Global Capital’s institutional fund,” stated FTX CEO Sam Bankman-Fried. “From the very beginning, Matthew and the Sino Global Capital team supported the FTX vision and then worked with us to help make it a reality. The Fund will now provide more opportunities to projects that are pushing crypto and blockchain technologies to the next level.”
Sino Global has never taken outside funds for a fund before. To date, the business has invested in cryptocurrency companies using its own money. Solana, FTX, Serum, and Wintermute are among the 20 crypto startups Sino has funded thus far.
According to Graham, some of these investments will be moved to the new fund. LayerZero, Clearpool, Orca, and several yet-to-be-publicly-announced investments are among them.
Sino’s investment in Solana has proven to be one of its most profitable. When questioned how the business plans to repeat that record for the new fund, Graham stated the company would use the same “bottom-up” investment technique.
“We will be using our same approach of betting on and then working with and supporting entrepreneurs that have similar values of a high-trust and long-term approach to the ecosystem,” he added.
The Liquid Value Fund I will invest in various crypto ventures, such as DeFi and NFT infrastructure, with a special emphasis on the Solana and Ethereum ecosystems.
While the fund will invest internationally, Asia, especially India, will be its primary emphasis. “We see India as an extremely important, yet idiosyncratic, market for crypto,” Graham added, applauding India’s engineering prowess.
“We have been active in finding and engaging with the best entrepreneurs in the crypto space in India and will continue to do so aggressively,” he added.
Given the lack of crypto legal clarity in India, Graham expressed optimism, believing that crypto would be regulated as a commodity by the nation’s government.
According to Graham, Sino Global presently employs 13 individuals, and the business is looking to add more for the new fund’s management.