Investing in Web3, the new fad for venture capitalists: CakeDefi’s example

While the emergence of Web3 only confirms a trend that has already existed for several months, many companies in the crypto ecosystem are turning to investing in the future. While DeFi (Decentralized Finance) and NFTs saw their peak in 2021, the year we are living in should see the explosion of the Metaverse and DAOs.

However, many companies that are already established in the ecosystem are trying to weave their network and thus offer new services in Web 3 after they have made a name for themselves.

This is the case of CakeDefi, a platform that is very well known in Asia, founded in 2019, which makes it possible to offer a variety of DeFi products such as lending, betting or even liquidity mining. On Wednesday, March 9, the company announced that it had launched a venture fund dedicated to Web3: Cake Defi Ventures, to amplify the phenomenon.

Why is Web3 so attractive?

While the blockchain has caused profound disruption to many economic sectors, notably thanks to the use cases of cryptocurrencies, NFT or DeFi, Web3 is now on everyone’s lips. The gaming, esport, Metaverse, and uses that Web3 allows are numerous and the hype around the Metaverse in particular is attracting many players, first and foremost investment funds.

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No doubt the number one reason why many actors are concerned about it The excitement generated by this new version of the Internet : After two successful first waves, the opportunities promised by Web3 are attracting many brands. The announcement at the end of 2021 of Facebook’s switch to Meta is likely to spark the curiosity of many players and investors, with an understanding of the incredible revolution that is in the making over the next five to ten years.

Web3 privacy is It is based on many technologies Allowing full decentralization and the emergence of the concept of digital ownership, particularly allowed by NFTs.

In a recent report released at the end of 2021, Morgan Stanley outlines what Web3 . should look like Revolutionizing the world’s interactions with the internet of value and the concept of monetization and ownership in the digital age. Web3 should open the door to many uses, business models, and organizations that are enabled by the many technologies in use. For this reason, more and more economic actors of various sectors are concerned about it, and investment funds are among them.

Among the recent investment funds that have taken an interest in the ecosystem, we find in particular Griffin Gaming Partners Raised $750 Million in the ecosystem, but also Bain Capital Ventures that invested $560 million And Sequoia Capital. Focus on CakeDefi, the latest company to launch its $100 million Cake Defi Ventures business.

CakeDefi, a decentralized finance company that aims to make finance “fun” and transparent

DeFi cake, is DeFi platform manages more than $1 billion in assets which has created a $100 million venture capital arm to invest in emerging web3, gaming, and fintech companies around the world.

Cake DeFi Ventures aims to bring the new benefits of blockchain to as many people as possible.

Cake paid out more than $230 million in rewards to its users last year, and is on track to pay out more than $400 million to its customers in 2022. With features like staking, liquidity mining or lending, fintech allows users to earn income from their digital asset investments.

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to allow its users Exploiting the potential of decentralized finance (DeFi) and enabling them to do so, Cake DeFi aims to educate and inform people around the world about the world of crypto in the easiest way possible.

In the fourth quarter of 2021, Cake DeFi nearly Double the number of confirmed users, which managed to grow 10-fold over the whole of 2021. A total of $230 million was paid out to customers in bonuses during the year, including $75 million in the last three months. The company doubled 6 customer assets in 2021.

on the product side, The company offers all kinds of decentralized asset classes on Cake DeFiThus achieving the roadmap for 2021. For this year, the company plans to roll out the lending feature, which will be implemented in the first quarter of 2022.

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In addition, Cake DeFi will launch a new “Cash Flow Asset Visualization” page, to make it more user-friendly, as well as a “Learn and Earn Program” to help new users get started on their journey. “Investment.

Cake Defi Ventures: The future of Web3 is here

The young Singaporean photography has already been a visionary, it follows the current trend and takes into account more than optimistic forecasts made in the Web3, gaming and financial technology market.

Indeed, with the launch of Cake Defi Ventures, with an initial capital of $100 million, the fintech is dealing a blow to the ecosystem.

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CDV will focus on investing in tech startups across the web3, metaverse, NFTs, esports games, and fintech spaces. Where Cake’s core business currently lacks exposure.

CDV will be led by Cake DeFi CEO Julian Hosp and CTO U-Zyn Chua who co-founded the company.

We are a B2C platform that truly focuses on providing easy cash flow to our customers“Hosp told CoinDesk in an interview.”Therefore, the fund’s thesis mainly aims to search for projects and companies in which we can have solidarity. “

By launching Cake DeFi Ventures, we strive to bring the potential of cryptocurrency and blockchain to the world. With Cake’s current position as the fastest growing platform in Singapore and Southeast Asia, the projects we invest in can expect to receive significant support globally.Chua said in a press release.

The fund will provide funds, ideas, and industry connections to investment firms.

Thus, companies in the CDV portfolio will be able to receive strong Cake DeFi support, and will have the opportunity to gain access to the many Cake products, connections, users, resources and expertise in the global industry. blockchain.

This new example once again shows the enthusiasm and strategic expectations being made in Web3, and it’s just getting started.

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