UAE’s Sigma Capital launches a $100M fund focused on metaverse and blockchain infrastructure

Sigma Capital, a private equity firm based in the UAE, has launched a $100 million fund aimed at driving innovation in the web3 space, including blockchain infrastructure and the metaverse. Known as “Sigma Capital Fund I,” the fund will focus on investing in a diverse range of web3 sectors, such as decentralized finance (DeFi), blockchain infrastructure, real-world asset tokenization, gaming, and the metaverse. The announcement was made on January 14 through a press release.

One of the key features of the fund is its active management of a portfolio of liquid tokens, enabling Sigma Capital to take advantage of market opportunities and generate consistent returns. The firm has set ambitious goals for the next three years, aiming to invest in 100 early-stage startups, 25 liquid tokens, and 10 fund-of-funds. Additionally, Sigma Capital will leverage high-yield strategies in DeFi to optimize the performance of its portfolio, as well as invest in high-growth crypto venture funds to expand its exposure to emerging web3 innovations.

Vineet Budki, the CEO and managing partner of Sigma Capital, will lead the fund. He expressed the firm’s vision for a digital economy that is more open, inclusive, and innovative, emphasizing that the UAE’s favorable economy and regulatory environment are ideal for fostering the next wave of web3 advancements. Budki also highlighted the firm’s strategy to work closely with web3 hubs across 10 cities worldwide, offering market insights and support to the startups in which it invests.

Although the firm has not provided specific details on how it will select startups for investment, the fund aims to provide significant backing and resources to early-stage companies that are building the future of web3 technologies. Sigma Capital’s new fund represents a significant step forward in the UAE’s push to position itself as a global leader in the web3 and blockchain sectors.