Binance Founder CZ May Open $10B YZi Labs To External Investors

Binance co-founder Changpeng Zhao, nicknamed CZ, is weighing plans to open his $10 billion YZi Labs investment vehicle to outside investors.

The fund, which was spun out of Binance in January, is one of the biggest crypto investors in the world. It manages CZ’s personal fortune and funds from a few early Binance Insiders, including co-founder Yi He.

“There’s always a lot of external investors interested,” head of YZi Labs Ella Zhang told the Financial Times in an interview. “We will eventually consider turning it into an external-facing fund. We think it’s not there yet.”

The fund, which was rebranded from Binance Labs, accepted outside funding of approximately $300 million in 2022, but later returned part of it.

The firm’s portfolio comprises prominent crypto and Web3 projects including Aptos Labs, Polygon, 1 inch Network, and Sky Marvis. Additionally, the company has also invested in several infrastructure and security firms like LayerZero, Mysten Labs, and Certik.

In total, there are over 230 companies in its portfolio, according to Dealroom.  

CZ’s YZi Labs Aims To Shape The Future Of Crypto

In 2023, Zhao pleaded guilty to a criminal charge of failure to protect against money laundering. After completing his prison sentence, CZ emerged with a new goal: to invest in and mentor early-stage projects in artificial intelligence, robotics, and biotechnology.

The way he would approach it was by transforming Binance Labs into a family office under the name YZi Labs. Under YZi Labs, CZ planned to refine the venture capital unit’s incubation program, which would include residency initiatives for project founders.

According to Zhang, YZi Labs has received pitches from more than 50 projects seeking funding from its investment arm. Digital asset investments account for approximately 70% of the firm’s investments, but interest in AI and robotics is increasing.

“CZ’s vision is that robotics will help human beings to do things and their transactions will be [done] through crypto wallets,” she said. “In AI and biotech, we’re still early, we’re forming our team. When we have that expertise, we have the confidence level, we’ll open up for external investors.”

CZ also made headlines this week after Giggle Academy, his free K-12 platform, raised $3 million in crypto donations within 36 hours of its September 21 launch.

Built on BNB Smart Chain, the academy teaches underserved kids, with CZ funding operations. “Free, high-quality education,” CZ urged on X.