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 to help them optimize their business models and investment strategies.
CZ emphasized that his investment philosophy focuses more on social impact rather than short-term returns. The return of Ella Zhang also supports this belief. Ella served as the first head of Binance Labs and will lead the strategic development of YZi Labs. She has successfully incubated more than 40 projects including Polygon, Injective Protocol and CertiK, and her experience will bring more innovative power to YZi Labs.
In his career after being released from prison, Zhao Changpeng has repeatedly stated that he will pay more attention to applications in "human welfare" and has previously delved into the field of education to a certain 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 the original 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 Value Creator (MVB) Program". As one of its core investment areas, Web3 will continue to promote the development of dApps and blockchain infrastructure, and investment in this area will mainly empower the Binance ecosystem.
- AI: AI is seen as an important driving force for future technology, and YZi Labs plans to invest in AI startups and explore its combination with blockchain technology. For example, it has invested in AI infrastructure such as Sahara AI and MyShell, which are committed to achieving the decentralization of AI through blockchain technology. However, for users, their perception may be more focused on the Agent field, so it may be emphasized in subsequent investments.
- Biotech: Investments in the biotech field will focus on projects with transformative potential, especially innovative applications that intersect with AI and Web3 technologies. Previously, Changpeng Zhao attended the DeSci conference in Bangkok and held relevant discussions, and this preference was also reflected in subsequent investments. For example, in previous investments, BIO Protocol provided a financing paradigm for decentralized science, and the expansion in this area reflects YZi Labs' focus on interdisciplinary technology integration.
After transforming into a family office, YZi Labs 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 its focus on high-potential projects. YZi Labs currently manages approximately $10 billion in cryptocurrency-related assets and plans to further expand its portfolio.
YZi Labs also plans to expand its team from the current 9 to 20 people and recruit experts in AI and biotechnology to enhance its investment capabilities in emerging fields. After separating from Binance, we can foresee that YZi Labs will have greater freedom and breadth in decision-making. At the same time, the VC department after the complete spin-off will be more influenced by the personal preferences of Zhao Changpeng's family.
Mutual support
YZi Labs plans to create an immersive collaborative environment for entrepreneurs by optimizing its incubation program and launching a 12-week offline Bootcamp program. This initiative not only strengthens face-to-face communication between entrepreneurs, but also accelerates the growth and innovation of start-ups through direct guidance from mentors, aiming to help entrepreneurs achieve the leap from concept to market, while exploring the innovative possibilities brought about by the integration of these fields.
Judging from Binance's previous ecology, it needs to empower its public chain BNB CHAIN and related applications. In terms of the on-chain ecology, the existing pure on-chain liquidity is concentrated in the Solana and Base ecology. For the BNB ecology, a certain post-investment driving effect is needed to support it. As an industry-leading exchange, the resources that Binance can provide are unmatched by others. From the many products launched in recent years (Binance Alpha, HODLER Drop, etc.), it can be seen that Binance is promoting users for many projects, including projects invested by YZi Labs (such as Solv Protocol and BIO Protocol, etc.).
The renaming 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 promoter of cross-field innovation in the coming years. Its positioning as a family office also provides it with greater flexibility and long-term investment vision.
