The Financial Times has revealed that YZi Labs, the investment firm established by Changpeng “CZ” Zhao, co-founder of Binance, is contemplating the possibility of inviting external investors into its fold. This prospective shift comes as part of a broader strategy to evolve the company, which was initially branded as Binance Labs and has since transformed into a family office with a valuation of approximately $10 billion.
In an interview, Ella Zhang, the head of YZi Labs, conveyed the firm’s openness to potentially transitioning into an investment fund model, stating, “There’s always a lot of external investors interested, and we will eventually consider turning it into an external-facing fund.” This statement indicates a strategic pivot that could reshape the organization’s investment dynamics.
The rebranding from Binance Labs to YZi Labs occurred shortly after CZ’s release from a four-month prison term linked to regulatory oversights concerning Binance’s compliance protocols. Following this episode, Zhao stepped back from his role as Binance CEO to concentrate his efforts on YZi Labs, which manages the financial interests of both Zhao and his long-standing partner, Yi He.
While YZi Labs has established a reputation for its investments in the Web3 space, Zhang acknowledged that the firm is still in the nascent stages of exploring opportunities in artificial intelligence (AI) and biotechnology. “We’re forming our team, and when we have that expertise, we’ll be open to external investors,” she added, highlighting the demand for specialized knowledge in these burgeoning areas.
Typically, family offices like YZi Labs focus on managing the wealth of a single family and do not engage with external capital sources. This structure allows for privacy and distinct investment strategies tailored to the family’s unique financial goals. However, the growing interest from external investors may prompt YZi Labs to reconsider this conventional approach.
As this story develops, it remains to be seen how YZi Labs will adapt its strategy in light of increasing investor interest and the fast-evolving landscape of both cryptocurrency and emerging technologies. The company has yet to respond to inquiries from CoinDesk about the potential restructuring or any immediate plans to welcome external investors into its operations.
For now, the prospect of YZi Labs evolving into an external-facing investment entity marks a significant shift in the ambitions of CZ and his team as they navigate the complexities of investment in the current market landscape.
