Earlier this year, cryptocurrency exchange Binance made a significant move by spinning off its venture capital arm, Binance Labs, marking one of the notable actions of the new CEO, Richard Teng, who assumed the role in November. This development was reported by Bloomberg on Friday.
Binance Labs now operates as an independent entity, separate from the Binance Group, as indicated by a disclaimer on its website. While licensed by Binance to use its trademark, Binance Labs emphasizes that it has no other relationship with the Binance Group.
The leadership transition occurred after CZ Zhao, the co-founder of Binance, pled guilty to charges related to violating sanctions and money-transmitting laws in the U.S. Teng’s appointment signals a strategic shift towards greater regulatory compliance at Binance, given his background working for regulatory authorities such as the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM) and the Monetary Authority of Singapore (MAS).
In a blog post from February, while Binance Labs still identified itself as “the venture capital arm and accelerator of Binance,” it disclosed a valuation of $10 billion and a portfolio comprising approximately 250 companies. Notable investments include Ethereum sidechain Polygon and sports-focused blockchain provider Chiliz.
A recent study by CoinGecko, conducted the previous year, unveiled that Binance Labs had engaged in a total of 177 investments as of September 2023, positioning it as the ninth most active among its counterparts. This statistic places it in a similar league with companies such as Pantera Capital and Digital Currency Group, slightly trailing behind Animoca Brands. Notably, Coinbase Ventures emerged as the most active crypto venture capital firm during that timeframe, boasting a substantial 372 investments.