China Mobile Communications Corporation (CMCC), one of the world’s largest telecom companies by market cap, is launching a $100 million venture capital fund focused on investing in early-stage blockchain and Internet of Things (IoT)-related startups. The fund, dubbed CMCC Global, was announced at the Mobile World Congress Shanghai on June 27.
The venture capital arm of CMCC, which operates China’s largest telecom network, will be focused on investing in blockchain-related projects located in the United States, Europe, Southeast Asia, and Japan. As part of this venture, CMCC Global also plans to open up offices in San Francisco, Tokyo, and Shanghai.
According to a statement from the company, the fund will focus on helping the growth of blockchain startups located in countries that already have significant investments in the technology. The fund will also aim to make strategic partnerships with companies, universities, and research organizations around the globe.
“We plan on making the largest investment in blockchain-enabled startups across multiple markets and geographies, as well as developing new business models in the space,” said Ding Yi, CMCC’s chairman and CEO. CMCC Global’s Managing Director, Luo Weijia, stated that “[they] are looking for excellent companies with comprehensive technical capabilities, user stickiness, and huge business potential.”
The fund is a major step forward for the Chinese mobile industry, which has been slow in adapting to the blockchain technology revolution. CMCC’s entry into the space is likely to inspire more large enterprises in the country to invest in blockchain technology, and further bolster China’s growing blockchain market.
It remains to be seen how successful CMCC’s $100 million venture capital fund will become, but it has the potential to reshape the global blockchain landscape if it helps organizations and startups across different regions drive innovation and scale their businesses. With the fund focused on investing in early-stage companies, these investments may help bridge the gap between the current and future state of the blockchain and IoT space.