Binance has been actively working to expand its customer base and influence in various sectors. A recent report indicates that the firm is aggressively investing in mergers and acquisitions (M&A) as a vital part of its growth strategy. Binance Chief Business Officer, Yibo Ling, who joined the firm in November 2022, holds a significant role in bringing these plans to fruition.
During an interview at Consensus 2023 in Austin, Texas, Ling outlined the exchange’s growth strategies, emphasizing VC-backed strategic mergers and acquisitions. He noted that Binance’s VC arm, Binance Labs, seeks to expand by investing in as many projects as possible. Operating under the principle that “a rising tide lifts all boats,” Binance Labs aims to maximize its impact through increased investments.
Binance Labs focuses on investing in growth and early-stage companies through seed and Series A funding. According to Ling, the exchange’s primary goal is to enhance lives through Web3 and blockchain technology while expanding its customer base. However, the firm isn’t solely focused on charitable causes. It also places a high value on return metrics and ROI from its partnerships.
Ling disclosed that Binance’s portfolio, mainly comprising early and growth-stage venture capital investments, is valued at about $9 million. Emphasizing the firm’s focus on long-term holdings, Ling shared that Binance typically does not divest its investments. Currently, the company has over 200 portfolio companies spread across continents, except for Antarctica, and continues to grow.
Binance’s VC arm also directly invests in projects, apart from supporting incubation initiatives. The crypto giant aims to fill geographical gaps while expanding its customer base by acquiring more firms from various economic sectors across all continents.
This latest revelation by Ling was consistent with a March 2022 Financial Times report, highlighting the exchange’s plans to diversify beyond the realm of cryptocurrency. The exchange’s CEO, Changpeng Zhao, confirmed this on Twitter, sharing that the company aims to invest in one or two firms from every economic sector and integrate them with the world of crypto.
Zhao believes that bringing traditional firms into the crypto space will encourage slow-moving competitors, resulting in increased market competition overall. One notable example of the exchange’s expansion and diversification plans is Binance’s acquisition of a $200 million stake in Forbes, a prominent media company, as part of its initiative to promote Web3 technology.
Source: Cryptonews
