Temasek Holdings, the Singapore sovereign wealth fund, is reportedly planning to raise over $100 million for its second venture capital fund, according to Bloomberg. Superscrypt, a blockchain venture capital firm backed by Temasek, is at the center of this fundraising effort. Temasek is expected to be the primary investor and partner in the new fund.
(Background:
Taiwan has no sovereign wealth fund! Central Bank Governor Yang Jinlong: Temasek lost $5.7 billion in cryptocurrency investments and faces difficulty explaining to society.)
(Background Supplement:
Temasek: No longer willing to invest in cryptocurrency due to unfriendly regulations! Still reeling from a $275 million loss linked to FTX.)
After the collapse of FTX, Temasek Holdings is making a return to cryptocurrency and blockchain venture capital. Bloomberg reported yesterday that sources familiar with the matter revealed Superscrypt is planning to raise over $100 million for its second venture capital fund, backed by Temasek. The sources also mentioned that Temasek and Republic, a fintech company based in New York, have been listed as primary investors in the new fund and will serve as general partners.
Currently, this fundraising process is ongoing, and the final amount raised may still change. Temasek, Republic, and Superscrypt have not responded to confirm this report.
Following the FTX incident, Temasek was compelled to write down its $275 million investment to zero. This led to significant questioning of former Singapore Prime Minister Lee Hsien Loong and current Prime Minister Lawrence Wong in Parliament. Subsequently, Temasek significantly reduced the salaries of the team responsible for the FTX investment and its executives.
The investment director at Temasek indicated that further investments in cryptocurrency would be “very difficult” due to significant regulatory uncertainties surrounding the sector. Despite the overall downturn in the cryptocurrency industry and market following the collapses of Terra, Three Arrows Capital, and FTX in 2022, the market has seen a resurgence this year with the introduction of Bitcoin spot ETFs, leading to an increase in venture capital flowing into digital asset companies. Now, following the $275 million loss from FTX, there are indications that Temasek is planning a return to the sector.
Extended Reading:
Temasek: No longer willing to invest in cryptocurrency due to unfriendly regulations! Still reeling from a $275 million loss linked to FTX.
Superscrypt: A Web3 fund supported by Temasek.
Superscrypt is an early-stage blockchain venture capital firm supported by Temasek, investing in protocols and teams that enhance blockchain usability and supporting teams in building applications and emerging use cases based on Web3 technology. Since 2022, it has invested in over 20 projects, including software developers backed by Microsoft and startups like Space and Time and Aptos Labs, which operates the Move public blockchain.
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Singapore’s Deputy Prime Minister: No plans to become a “hub for cryptocurrency activities”; Temasek undergoing internal review due to FTX “reputational damage.”