The investment company YZi Labs, formerly known as Binance Labs and connected to Binance co-founder Changpeng Zhao, is considering the establishment of an investment fund with a capital of $10 billion, available to external investors. According to YZi Labs’ head Ella Zhang, there is significant demand for participation in the fund, but the company is focused on developing expertise in artificial intelligence and biotechnology before moving on to attracting outside investors.
This is reported by Finway
Fund Development and Challenges of Managing Cryptocurrency Investments
Ella Zhang emphasized that YZi Labs is currently forming a team of specialists in cutting-edge technologies, and a decision on opening the fund to external investors will be made when the company is ready. She also highlighted that managing such a substantial investment portfolio in cryptocurrency is a complex task, as it requires finding suitable assets that meet the company’s high standards.
“There are always many external investors interested in us, and we will consider the possibility of transforming into a fund for external investors over time. Right now, we are just not ready yet.”
The head of YZi Labs added that managing $10 billion, or possibly even more, is a serious responsibility. She also noted that Binance co-founder Changpeng Zhao has tasked her with effectively investing the fund’s resources, but finding that many quality assets is quite challenging.
Company Strategy and Prospects for Attracting Investors
It is worth noting that YZi Labs already has experience in attracting external funds — in 2022, the company received around $300 million in investments, although part of that money was returned due to exceeding the fund’s capacity. According to the Financial Times, if the fund opens to American investors, the company may come under close scrutiny from U.S. regulators.
Currently, the YZi Labs team consists of 12 individuals who invest funds long-term and cautiously. It was also previously reported that YZi Labs, along with 10X Capital, plans to create a company to invest in BNB.