UAE’s Cypher Capital launches $100 million crypto asset fund

    26 Mar 2022
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    Cypher Capital, a Dubai-based venture capital company, is launching a $100 million seed fund aimed at investing in crypto and digital assets. It plans to invest 40% of its funds in the emerging blockchain and crypto startups in India.

    The fund, financed by the company’s founder, Bijan Alizadeh, will also invest in decentralized finance platforms, blockchain applications, and cryptocurrency gaming, Arab News reported citing Reuters.

    “It’s going to be 100 percent digital assets,” Alizadeh told Reuters.

    Cypher, which has $10 million in assets under management, plans to deploy on average $2 million to $5 million each month. It will focus on investing in the Middle East and North Africa and South Asia regions, and will also invest elsewhere.

    The company, which may raise capital in the future for new investment funds, aims to manage $1 billion in assets within three years.

    Cypher is also planning to open a crypto, blockchain, and digital asset hub in Dubai, to offer a workspace where startups can pitch their ideas to potential investors, Alizadeh said.

    They would also be offered mentoring, legal advice and technical advice, he said, hoping to develop the hub into an industry-focused networking community.

    In addition, Cypher Capital aims to invest 40% of the fund in emerging blockchain and crypto startups in India.

    In an interview with Economic Times, Vineet Budki, managing partner of Cypher Capital, said India has a combination of talent, successful projects and plenty of retail crypto investors, which makes it lucrative for venture capital funds to invest in Indian blockchain and crypto startups.

    “India has shown exceptional interest in blockchain ecosystem building with projects such as Matic (Polygon) and hence holds special value for us. We believe in educating people on use cases such as decentralized finance (DeFi), lending and borrowing and play-to-earn gaming, and handholding blockchain startups to build valuable companies,” Budki said.

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