On Thursday, Binance announced that Binance Holdings Ltd.'s former venture capital department, Binance Labs, has officially been renamed YZi Labs, expanding its investment focus from the blockchain sector to fields such as Web3, AI, and biotechnology.
The statement noted that this move "marks its independence and a broader investment focus." Following the renaming, YZi Labs will distance itself from the Binance brand and commit to promoting innovation across multiple industries.
Return of the former head of Binance Labs
Currently, YZi Labs manages approximately $10 billion in crypto-related assets, including assets from Binance co-founder He Yi. Zhao Changpeng currently serves as an advisor in an "intern" capacity, guiding the company's investment strategy.
Additionally, former Binance Labs head Ella Zhang will return as the head of YZi Labs to guide the company's next phase of development.
Ella Zhang co-founded Binance Labs with CZ in 2018 and left in 2020 to pursue entrepreneurship. Under her previous leadership, the first three batches of the Binance Labs incubation program successfully supported over 40 startups, including Polygon, Injective Protocol, CertiK, and Dune Analytics. Today, Ella Zhang will drive YZi Labs toward the next stage of development with her extensive investment experience and unique entrepreneurial perspective.
YZi Labs stated in a declaration that it is not a family office, but a "venture capital and incubation company dedicated to promoting innovation and supporting investments across various fields." The company also stated that He Yi does not participate in the daily operations of YZi Labs. A spokesperson for the company indicated that YZi Labs does not have a formal headquarters, and all employees work remotely.
Furthermore, during her interview with Bloomberg, Ella Zhang mentioned that Zhao Changpeng has not injected additional funds into YZi Labs. According to her, the assets of YZi Labs are primarily composed of tokens issued by its investment projects, with a total book value exceeding $10 billion, which surpasses the asset value of a16z, which states on its official website that it has over $7.6 billion in "committed capital" across multiple funds.
Ella Zhang also stated that the company is recruiting experts in fields such as Web3, AI, and biotechnology, and plans to expand the team from 9 to 20 members. Zhao Changpeng will be closely involved in the investment decisions at YZi Labs and will serve alongside her as a member of the investment committee.
Entering the AI field
According to the statement released by Binance, YZi Labs' investment strategy will now cover three core areas:
Web3: Continuing to support blockchain innovation and decentralized applications.
Artificial Intelligence: Exploring the transformative potential of artificial intelligence across various industries.
Biotechnology: Investing in emerging biotechnology solutions that align with innovation-driven goals.
Despite focusing on expansion, YZi Labs remains committed to supporting projects with long-term potential and provides ongoing support through its incubation program and the Most Valuable Builders (MVB) program on the BNB chain. Additionally, YZi Labs will relaunch a 12-week live residency program for project founders aimed at fostering collaboration, mentorship, and practical development among startups. Even before YZi Labs was renamed, Binance Labs had been exploring investments in decentralized science projects and AI startups.
In August 2024, the company announced investments in two artificial intelligence companies to support the development of AI-driven decentralized applications. The first is Sahara AI, which allows users to maintain intellectual property through on-chain ownership and earn rewards for contributing to the infrastructure, knowledge bases, and maintenance of decentralized AI. The other is the AI startup MyShell, which enables users to build and share AI applications.
In November, the incubator ventured into the decentralized science (DeSci) field by investing in BIO Protocol, an accelerator program focused on capital formation for biotechnology, a new emerging way to fund life-saving medicine. Although DeSci is an emerging field, projects within it have begun to receive recognition beyond the crypto community.
Expanding investment areas
As early as last September, Zhao Changpeng mentioned plans to expand investments in the tech sector. At that time, Zhao had just been released from a low-security prison in California, USA. Previously, U.S. authorities had charged Binance and Zhao Changpeng in 2023 for failing to prevent cybercriminals and terrorists from trading on the platform. Ultimately, Zhao agreed to pay a $50 million fine, resign from the CEO position, and was sentenced to four months in prison.
In a post on X, Zhao Changpeng pledged to focus on prioritizing "impact" over returns in his investments. He stated that a new venture called Giggle Academy, a non-profit online education platform, will become an important part of his life. He also mentioned, "I will continue to invest in blockchain/decentralized technologies, artificial intelligence, and biotechnology. I am a long-term investor concerned about impact rather than returns. I will also devote more time and resources to charity (and education)."
As of the time of publication, according to the Bloomberg Billionaires Index, Zhao Changpeng's total assets are estimated at $69.8 billion, ranking him 22nd globally. The index estimates that Zhao Changpeng's wealth is entirely composed of his shares in Binance Holdings Limited.