Binance appointed co-founder Yi He as head of its venture capital and incubation agency Binance Labs in August. In a recent interview, she said that in the bear market, she will continue to actively invest, and shared three areas they are focusing on.
(Recap:Binance Announces He Yi Will Take the helm of Binance Labs with $7.5 Billion Under Management）
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With total assets of $7.5 billion and investments in more than 200 projects, Yi He, the current head of Binance Labs, a venture capital and incubation organization under Binance. Earlier in an interview with Forkast, she said that she has active plans for the development of the sector, and that they should invest more actively in a crypto bear market.
I’m looking for early stage projects that will provide long-term benefits to the industry and see an opportunity in the current bear market conditions.
One has to filter out “copycat” projects that are just a whim to make a quick buck… Such projects lack a solid business model and won’t last.
According to a press release issued by Binance Labs last month, since the division’s inception in 2018, it has achieved a 21x return, incubating many successful projects in the industry, such as Polygon, FTX, Certik, Nym, Dune Analytics, etc.; and recently completed the fundraising of US$500 million, with the participation of global investment institutions including DST Global Partners and Breyer Capital.
How to choose investment targets?
When asked how did you choose which projects to invest in? He Yi stated that Binance Labs is working on three types of companies:
1. Projects to build infrastructure
Ho believes that the crypto industry is still in its early stages. But in the future, she envisions people should be able to use blockchain-native products anywhere, just as we are used to office software and social media today.
It’s just that there are still certain technical bottlenecks. So infrastructure is an area that we will still invest in, whether it’s a layer 1 enterprise or a cross-chain protocol.
2. Innovative applications with a large user base
The second type of projects are those running various blockchain applications. They are rich in innovation and have a large user base, such as projects that use game-to-money (P2E) or mobile monetization models.
3. Blockchain-related service providers
Binance Labs is focusing on companies that provide blockchain-related services to support the better development of the industry, such as data security. After all, in the Web3 industry, hacking of projects happens all the time.
He Yi emphasized that Binance’s investment projects are not just about making some quick money, they put more emphasis on “long-term development”. While she doesn’t shy away from saying that there are some founders and entrepreneurs who find it easy to raise money in Web3 and start to lie down, she believes that many people in this industry are still actively exploring different ways to succeed, and we hope that Find those who value long-term development.
Investing $200 million in Forbes faces headwinds
In addition, when the host asked about the latest status of Binance’s $200 million strategic investment in media giant Forbes in February this year. He Yi said that they are still watching the investment case, but there seems to be some difficulties at the moment, and some of their shareholders may want to dilute their holdings in Binance.
He Yi cites Musk’s desire to acquire Twitter as an example. Binance is willing to put in $500 million to assist with the acquisition because they see it as a great opportunity, which is good for Web3 education due to Twitter’s massive user base.
However, in the end, He Yi said that they did not really list the media as a specific investment target, but stated that if they did encounter a good target, they would still pay attention.
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