Binance Labs chief Ella Zhang expressed Thursday that Binance’s own reserves will provide the “capital for the fund”. This is the company’s way of giving back to the industry which has made it one of its giants.
The $1B funding will come in 10 stages where a hundred million in each phase will be injected into the project. The funding will have two components, “a fund that invests in other funds” and a fund that directly bankroll blockchain projects.
Zhang, the firm’s incubator program head clarified that their fund of funds is looking for 20 funds, each with a pool of at least $100M, to finance through Binance’s own BNB token. she stated.
Funcity’s “blockchain-powered ride-hailing initiative” previously announced by Chen Weixing, the firm’s CEO and former founder of Kuaidi Dache, a Chinese ride-hailing app, will be the first business to be funded. The beneficiary firm operations were disclosed by Chen at the Guizhou Big Data expo together with Meituan’s co-founder Yang Jun who runs “one of the largest group discount apps in China.“
“We believe it’s a disruptive social experiment. Binance Labs hopes to work with more aspirational projects to explore blockchain applications and together move forward the growth of the industry,” Zhang stated.