UAE’s Sigma Capital debuts $100m fund targeting metaverse and blockchain infrastructure

Gulf-based Sigma Capital has launched a $100 million fund to invest in web3 sectors from blockchain infrastructure to metadata.

Sigma Capital, a private equity firm specializing in early-stage startups, announced the launch of a $100 million fund to support web3 innovation. The fund, called “Sigma Capital Fund I,” will focus on projects in decentralized finance, blockchain infrastructure, real-world asset tokenization, gaming and even metadata, the firm said in a Jan. 14 press release.

“In addition, and as part of the fund, Sigma Capital will actively manage a portfolio of liquid tokens, capturing market opportunities to generate consistent returns.”

Sigma Capital

The firm announced that it plans to invest in 100 early-stage startups, 25 liquid tokens and 10 funds of funds over the next three years with the fund. It will also use high-yield strategies in decentralized finance to “optimize the fund’s portfolio performance and invest in high-growth crypto venture funds that expand the fund’s exposure to emerging web3 innovations.”

The fund will be led by Vineet Budki, the firm’s CEO and managing partner. Commenting on the initiative, Budki said the firm envisions a “more open, inclusive and innovative” digital economy. He added that the UAE’s economy and regulatory environment “provide the perfect backdrop for web3’s next wave of innovation.”

The press release notes that the company does not detail how it will select startups, but plans to work with web3 centers in 10 cities around the world to offer market insights and support.