cryptojournalist
Dubai-based venture capital firm Sigma Capital has unveiled a $100 million investment fund focused on fueling the growth of Web3 startups and blockchain technology. The fund aims to position the United Arab Emirates (UAE) as a global leader in blockchain innovation, targeting projects across decentralized finance (DeFi), the metaverse, and real-world asset (RWA) tokenization.
Targeting Web3 Innovation
Sigma Capital plans to allocate its $100 million fund strategically across three key areas:
- Early-Stage Web3 Startups: Supporting new businesses in DeFi, blockchain infrastructure, gaming, and metaverse development. The fund will also focus on RWA tokenization, a process that digitizes physical assets like real estate or commodities, making them easier to trade on blockchain platforms.
- Liquid Tokens: Investments in established cryptocurrencies and tokens with strong market potential.
- Fund-of-Fund Allocations: A diversification strategy that invests in other venture funds focused on blockchain and Web3 technologies.
This comprehensive approach aims to strengthen the foundation of the blockchain ecosystem and foster innovation in emerging sectors.
Leadership and Industry Praise
The fund is led by Vineet Budki, former CEO of Cypher Capital, who has a proven track record of backing successful blockchain projects like Mysten Labs and Sei Network. The initiative has also garnered praise from industry leaders like Polygon founder Sandeep Nailwal, who emphasized the UAE’s growing influence as a blockchain hub.
The UAE’s supportive policies and its ability to attract top global talent have made it a launchpad for blockchain projects, as highlighted during the Bitcoin MENA conference, which recently drew over 8,000 attendees from 90 countries.
Crypto VC Funding Hits New Heights
Sigma Capital’s fund launch is part of a broader trend of increasing venture capital (VC) investments in the crypto space. In 2024, crypto-focused VCs deployed $13.6 billion, accounting for nearly 5% of all VC funding. Analysts expect this momentum to continue in 2025, driven by improving regulatory clarity and declining interest rates.
Galaxy Research predicts a 50% surge in crypto VC activity this year, with RWA tokenization emerging as a key focus. Experts believe this sector could grow 50-fold over the next five years, potentially reaching a market value of $30 trillion.
