CZ's "re-entrepreneurship" fights for the future of encryption
Written by: Peter, Foresight News
In the crypto space, Binance is a name that every practitioner cannot avoid, and Binance Labs, as a leader in primary investment, has a self-evident impact on the crypto space. A few months after Zhao Changpeng was released from prison in Long Beach, his net worth reached $70 billion due to the frenzy of cryptocurrency.
In this environment, Binance Labs officially announced its name change to YZi Labs on January 23, completing its transformation from a cryptocurrency venture capital institution to Zhao Changpeng's private family office. At a time when the on-chain market is booming, what impact will the transformation and expansion of YZi Labs' Binance pedigree and new investment strategy have on the entire ecosystem?
Investment expansion
Although CZ has stepped down from Binance, he will continue to play an important role in YZi Labs, providing one-on-one guidance and strategic advice directly to entrepreneurs, helping them optimize their business models and investment strategies.
CZ emphasized that his investment philosophy places more importance on social impact rather than short-term returns. The return of Ella Zhang also supports this belief. Ella was the first head of Binance Labs, and her return will lead the strategic development of YZi Labs. She has successfully incubated over 40 projects including Polygon, Injective Protocol, and CertiK, and her experience will bring more innovative momentum to YZi Labs.
From Zhao Changpeng's post-incarceration journey, he has repeatedly stated that he will pay more attention to applications related to 'human well-being', and he has previously delved into the education sector to some extent (through Giggle Academy for K12 type education). In the disclosed investment context, YZi Labs' investment areas cover Web3 infrastructure, DeFi, etc., and it will expand from its original focus on cryptocurrency and blockchain to Web3, artificial intelligence (AI), and biotechnology (biotech).
Web3: YZi Labs will continue to support blockchain and decentralized technology projects, including its previously incubated BNB Chain 'Most Valuable Builder (MVB) Program'. Web3, as one of its core investment areas, will continue to drive the development of dApps and blockchain infrastructure, with investments in this area primarily empowering the Binance ecosystem.
AI: AI is seen as a key driving force for future technology, and YZi Labs plans to invest in AI startups and explore their integration with blockchain technology. For example, it has invested in AI infrastructures like Sahara AI and MyShell, which are dedicated to achieving decentralization of AI through blockchain technology. However, users may perceive a stronger emphasis on the Agent field, thus future investments may reflect this focus.
Biotechnology (biotech): Investments in the biotechnology field will focus on projects with transformative potential, particularly innovative applications at the intersection of AI and Web3 technologies. Previously, Zhao Changpeng attended the DeSci conference in Bangkok and engaged in related discussions, and this preference is reflected in subsequent investments. For instance, in earlier investments, BIO Protocol provided a financing paradigm for decentralized science, and the expansion in this area reflects YZi Labs' attention to interdisciplinary technology integration.
After YZi Labs transforms into a family office, it will manage the wealth of Zhao Changpeng and his family members, including the assets of Binance co-founder He Yi. This transformation makes its investment strategy more flexible while maintaining a focus on high-potential projects. YZi Labs currently manages approximately $10 billion in cryptocurrency-related assets and plans to further expand its investment portfolio.
YZi Labs also plans to expand its team from the current 9 members to 20 and recruit experts in AI and biotechnology to enhance its investment capabilities in emerging fields. After distancing itself from the Binance name, it is anticipated that YZi Labs will have greater freedom and breadth in decision-making. Meanwhile, the fully spun-off VC department will be more influenced by Zhao Changpeng's personal preferences.
Complementary
YZi Labs plans to launch a 12-week offline Bootcamp program by optimizing its incubation plan, creating an immersive collaborative environment for entrepreneurs. This initiative not only strengthens face-to-face communication among entrepreneurs but also accelerates the growth and innovation of startups through direct mentorship, aiming to help entrepreneurs transition from concept to market while exploring the innovative possibilities brought about by the integration of these fields.
From the previous ecosystem of Binance, it needs to empower its public chain BNB CHAIN and related applications. In the on-chain ecosystem, existing pure on-chain liquidity is concentrated in the Solana and Base ecosystems, and the BNB ecosystem requires certain post-investment driving effects for support. As an industry-leading exchange, the resources Binance can provide are unmatched by others. The recent launch of multiple products (such as Binance Alpha, HODLER Drop, etc.) shows that Binance is advancing user engagement for many projects, including those invested by YZi Labs (such as Solv Protocol and BIO Protocol).
The rebranding and transformation of YZi Labs is not only a brand upgrade but also a comprehensive expansion of its investment strategy. By focusing on Web3, AI, and biotechnology, and relying on the leadership of CZ and Ella Zhang, YZi Labs is expected to become an important driver of cross-disciplinary innovation in the coming years. Its family office positioning also provides greater flexibility and a long-term investment perspective.
