Earlier this year, Binance made a significant move by quietly spinning off its $10 billion venture capital arm, Binance Labs, marking a notable development under Chief Executive Officer Richard Teng’s leadership, which began four months ago.
Binance Labs has transitioned into an independent entity, breaking some ties with the broader Binance group, according to a spokesperson for the former unit. The staff at Binance Labs now operate under separate contracts from exchange employees, mirroring the setup seen at Binance-backed digital ledger BNB Chain.
“We’re not part of the Binance group,” stated Binance Labs Investment Director Alex Odagiu. However, he mentioned that the venture capital affiliate will continue to license the Binance brand.
The crypto industry is closely monitoring any developments at Binance, the largest digital-asset exchange globally, following a November plea deal with US agencies that resulted in a substantial $4.3 billion penalty and the removal of founder Changpeng Zhao as CEO.
A disclaimer added to the Binance Labs website earlier in 2024 emphasizes that the entity is “an independent venture and not part of the Binance Group nor is it involved in any of the businesses operated by the Binance Group (including but not limited to the Binance cryptocurrency exchange).”
Prolific Investor
Binance Labs, led by Yi He, who co-founded Binance alongside Zhao, operates predominantly on funding from the exchange’s profits and serves as an active early-stage supporter of crypto projects. It functions as both a venture capital investor and an incubator, overseeing programs dedicated to startups building on BNB Chain as well as those with a blockchain-agnostic focus. Over its lifespan, Binance Labs has invested in approximately 250 projects, including notable names like Sky Mavis, Aptos Labs, LayerZero, Polygon, and The Sandbox. As of a recent announcement by Binance Labs, the entity’s assets are valued at over $10 billion on paper, indicating substantial growth.
Despite its transition to independence, operationally, Binance Labs remains largely unchanged, with a continued focus on identifying and investing in promising projects, as affirmed by the company’s spokesperson, Alex Odagiu. He emphasized that this focus has been consistent since the establishment of Binance Labs as a team in 2018.