Ex Binance Execs Launch Old Fashioned Research and Web3 Fund

Key Insights:

• Ex-Binance executives launched a multi-strategy blockchain investment fund targeting all stages of the startup lifecycle.
• The team aims to capture the underlying value of Web3.0 and support the next generation of crypto native entrepreneurs.
• Old Fashioned Research joins a growing list of investment shops targeting Web3.

Investor interest in Web3 is on the rise, leading to the launch of Old Fashioned Research (OFR). The crypto winter is pushing investors to explore investment options more directly linked to Web3.

In 2022, several investment banks delivered bullish projections on the metaverse, including Citi, Goldman Sachs, and JPMorgan.

For investors, however, identifying investment opportunities beyond the most publicized can be a challenge.

The opportunity to enter the space early has also meant that some executives from the crypto space have jumped into the more specialized Web3 space.

Ex-Binance Execs Launch Web3 Crypto Fund

In late 2021, former Binance executives set up an investment platform called Old Fashioned Research (OFR).

Founded by managing partners Ling Zhang and Wayne Fu, OFR set up a $100 million multi-strategy fund. The strategy is to drive crypto adoption in emerging market regions, including Latin America (LatAm) and Africa.

We are happy to announce the launch of $100M multi-strategy fund. OFR is dedicated to helping build the next generation of Web 3.0 dApps and protocols.https://t.co/17rjMwQIhf

— Old Fashion Research (@ofrfund) May 26, 2022

The team reportedly raised the $100 million through a limited partnership (LP) structure with LPs, including angel investors, family offices, and venture capital funds.

As of today, the fund has invested in more than 50 blockchain projects. Investments include WOO, Nestcoin, and Metaverse Magna, Africa’s largest play-to-earn crypto-gaming community.

According to the OFR website, the team will focus “on value-added investments where we can deploy our expertise, resources, and network to drive growth and success of ecosystems and their leading players.”

“Investments will target early-stage incubation, venture capital, M&A and other special situations.”

This year, crypto-focused funds have drawn plenty of media attention, particularly with the crypto winter and cheaper valuations.

Crypto Fund Launches Jump on Rising Demand for Web3 Strategies

Last week, crypto VC giant Andreessen Horowitz, also known as a16z, launched a fund dedicated to Web3 blockchain and gaming startups.

According to the report, “a16z wants a massive slice of the Web3 gaming and metaverse pie.”

It also has “plans to channel millions into firms building the next iteration of the internet.”

This week, Andreessen Horowitz was back in the news with the launch of its fourth fund. According to Reuters, the crypto VC shop raised $4.5 billion for its fourth crypto fund.

Such has been the furor over Web3 that the Hang Seng Indexes company announced the launch of the Hang Seng China Metaverse Index.

According to the May 23 announcement,

“Developments as part of the metaverse concept, which includes virtual reality (VR), gaming, and other digital experiences that use advanced technology in virtual spaces, have captured the attention of people around the world and are rapidly growing in popularity as investment themes among investors.”

The announcement went on to say,

“Riding on this trend, the Hang Seng China Metaverse Index aims to reflect the performance of mainland China companies that are involved in metaverse-related businesses, value chains, and development.”

In the interest of decentralization, OFR and others will be the key to driving growth in the Web3 space.

For investors, this also means that investment options will extend beyond Web3 cryptos, including Decentraland (MANA) and The Sandbox (SAND).