In a significant shift for YZi Labs, the investment firm founded by Binance co-founder Changpeng “CZ” Zhao, there are discussions about welcoming external investors. According to a recent report from the Financial Times, the $10 billion enterprise is contemplating transforming itself into an external-facing investment fund.
Ella Zhang, head of YZi Labs, indicated in an interview that there has been notable interest from potential outside investors. She stated, “There’s always a lot of external investors interested, and we will eventually consider turning it into an external-facing fund.” This potential development marks a considerable evolution for YZi Labs, which was restructured from Binance Labs to serve as Zhao’s family office.
The rebranding occurred shortly after Zhao faced legal challenges, including a four-month prison sentence due to compliance issues surrounding Binance’s know-your-customer (KYC) protocols. Following his release, Zhao has shifted focus towards YZi Labs, which is tasked with managing investments for him and his fellow Binance co-founder, Yi He, who is also his long-time partner.
While YZi Labs has established a strong footing in the Web3 investment landscape, Zhang emphasized that the firm is still in the early stages of exploring other sectors, particularly artificial intelligence (AI) and biotechnology. “We’re forming our team, and when we have that expertise, we’ll be open to external investors,” she noted, highlighting a strategic approach to diversifying the firm’s investment portfolio.
Family offices, such as YZi Labs, typically manage the wealth of a single family and do not usually engage with external capital sources. Therefore, the consideration to evolve into an investment fund could represent a significant change in operational strategy for YZi Labs.
The interest from potential investors reflects a broader trend within the crypto and tech investment space, as many firms are seeking to capture the potential growth in innovative sectors. The move suggests YZi Labs might be positioning itself to capitalize on burgeoning technologies, such as AI, which are gaining traction in various industries.
As YZi Labs contemplates this potential transition, it has not yet confirmed any firm plans to officially open its doors to outside investors. CoinDesk reached out to YZi Labs for further comments, but the firm has not responded at this time.
This development comes at a time when the investment landscape for cryptocurrencies and emerging technologies remains dynamic, with many players looking to refine their strategies in order to adapt and thrive in a competitive environment.
