The UAE has attracted major crypto exchanges like Binance and Crypto.com, which have received regulatory approvals, thanks to the region's clear regulatory framework.

The fund will leverage global partnerships and expertise, offering startups access to a wide network of market players and resources.

The first close of the fund is expected by mid-2025, with a final close anticipated 18 months later.

Budki stated that the fund is designed to empower startups with capital, access to a vast network, and expertise to thrive in a rapidly evolving digital landscape.

Expressing confidence in the crypto market's potential, Budki suggested that significant wealth and control will become available to investors in the coming years.

The launch of this fund seeks to leverage the United Arab Emirates' growing reputation as a major crypto hub, competing with financial centers like Singapore and Hong Kong.

Budki emphasized that the UAE's regulatory environment is ideal for Web3 advancements, fostering a more open and innovative digital economy.

Sigma Capital has established partnerships with notable blockchain players, including Polygon Technology and Blockchain Founders Fund, to provide robust support for its portfolio companies.

As of January 14, 2025, Sigma Capital, an early-stage venture firm based in Dubai, has launched a new $100 million fund aimed at investing in Web3 startups.

The fund, led by Web3 pioneer Vineet Budki, plans to manage a portfolio of liquid tokens and employ high-yield DeFi strategies, targeting 100 early-stage projects, 25 liquid tokens, and 10 fund-of-fund allocations over the next three years.

This initiative is designed to accelerate Web3 innovation in the Middle East and globally, reinforcing the UAE's growing status as a hub for blockchain innovation.

So far, Sigma Capital has secured approximately $40 million in pre-commitments from various investors, including crypto funds and high-net-worth individuals.