Sigma Capital’s $100 million Web3 fund is set to be a watershed moment for the blockchain landscape. Focusing on early-stage startups, DeFi, and tokenization projects, the hope is that it will lead to a burgeoning spring for this already soaring industry. This ambitious initiative also underscores the UAE's wider commitment to fostering cutting-edge technology and attracting global talent to its thriving ecosystem.
Read all about it and what it means for this industry looking ahead to 2025.
Sigma Capital’s Watershed Web3 Fund
Dubai-based venture capital firm Sigma Capital has unveiled a $100 million fund to support early-stage Web3 projects globally and within the United Arab Emirates. The fund aims to act as a catalyst for innovation in decentralized finance (DeFi), blockchain infrastructure, gaming, metaverse, and the rapidly growing real-world asset (RWA) tokenization markets.
Under Vineet Budki, a former CEO and managing partner of Cypher Capital, the fund will follow a diversified investment strategy. In addition to direct funding in Web3 startups, it will allocate resources to liquid tokens and fund-of-fund investments, ensuring a robust and balanced portfolio.
Budki Himself brings a wealth of experience, having backed projects such as Mysten Labs, Sei Network, and Manta Network.
The fund also emphasizes fostering innovation in blockchain technology by focusing on underrepresented regions and encouraging global collaboration.
Dubai Emerging as a Major Funding Source for Blockchain Investment
The establishment of this fund continues Dubai’s drive to position itself as a global hub for blockchain investments. Even domestically, the UAE blockchain market is projected to grow at an incredible CAGR of 42% from 2025 to 2030.
Favorable government policies like the Emirates Blockchain Strategy 2021 are seen as critical in powering this surge. For example, the Dubai Blockchain Strategy aims to digitize 50% of government transactions using blockchain technology by 2031.
In 2024 alone, Dubai attracted over $1 billion in blockchain-related funding, spearheaded by initiatives such as the Dubai Multi Commodities Centre (DMCC) Crypto Tower and Abu Dhabi Global Market (ADGM). The DMCC’s Crypto Tower, set for completion by 2027, will utilize blockchain for ownership transparency, smart contracts, and on-chain voting.
The UAE’s strategic focus has also drawn significant attention to real-world asset (RWA) tokenization. For instance, blockchain startup MANTRA recently announced plans to tokenize $1 billion worth of UAE-based property developer DAMAC’s assets in 2025.
Prominent voices have acknowledged Dubai’s leading role. Sandeep Nailwal, Polygon's co-founder, stated, “Dubai’s proactive blockchain initiatives ensure its place as a global leader in blockchain innovation.”
He also noted the significant role tokenization will play in the country, “Tokenization is transforming traditional finance by making it accessible and efficient.”
Moreover, Galaxy Research predicts a 50% increase in crypto venture capital activity in the region by Q4 2025, fueled by declining interest rates and enhanced regulatory clarity.
Crypto Market Bull Run To Continue in 2025
The cryptocurrency market is poised for another bullish year in 2025, fueled by critical developments and favorable economic conditions.
Bitcoin, which surged past $100,000 twice in late 2024, continues to attract institutional and retail investors on top of promoting widespread interest from consumer investors.
Bitcoin’s halving, scheduled for mid-2024, has reduced the supply of new coins, setting the stage for significant price growth. Historically, such halvings have initiated substantial bull runs. Altcoins like Ethereum and Solana are expected to benefit from this momentum, with analysts forecasting gains exceeding 70% for the broader altcoin market.
Innovations in AI-driven crypto trading, such as Token Metrics AI (TMAI), further energize the market. In 2024, TMAI raised $8.5 million and launched AI agents for optimized trading, showcasing how technology reshapes crypto markets.
Another sure indicator of the ongoing crypto bull market is the marked increase in venture capital activity. In 2024, blockchain and cryptocurrency-focused investments reached $13.6 billion, representing close to 5% of global VC allocations, as per Cointelegraph. This robust funding underscores growing confidence in the sector’s potential to reshape industries through decentralized technologies.
About Sigma Capital
Founded in 2018, Sigma Capital is a Dubai-based venture capital firm specializing in blockchain and Web3 investments. Under the leadership of Vineet Budki, former CEO of Cypher Capital, Sigma Capital has established itself as a pioneer in funding decentralized technologies.
With assets under management exceeding $500 million, the firm has backed transformative projects such as Mysten Labs, Sei Network, and Manta Network. Sigma Capital’s investment strategies encompass early-stage startups, liquid tokens, and fund-of-fund allocations, reflecting its commitment to innovation and diversification.
The firm is dedicated to fostering the growth of blockchain ecosystems globally, with a strong emphasis on the UAE.
A Transformative Era
As blockchain innovation continues accelerating in the UAE and beyond, Sigma Capital's bold investments highlight a transformative era for Web3 and decentralized finance. Will Dubai's ambitious vision cement its role as the global epicenter of blockchain, or will the competitive landscape shift as other regions race to stake their claims in this digital revolution?