Polygon Ventures, Aptos Labs, Animoca Brands Join Binance’s $1B Web3 Industry Recovery Initiative

Binance has established the Industry Recovery Initiative (IRI) to support struggling Web3 companies as the FTX contagion spreads.
Image source: Binance

Last Updated on November 25, 2022

Quick take:

  • The IRI is not an investment fund.
  • Binance expects the initiative to last about six months.
  • Each participant can withdraw any remaining unused funds from public addresses at the end of the initiative.

Binance has launched a Web3 Industry Recovery Initiative (IRI) following the FTX contagion that has led to other crypto companies with exposure to the crypto exchange, including Genesis Global Capital and Blockfi, teetering on the brink of collapse. 

According to Binance, the IRI is not an investment fund, but a new co-investment opportunity for organisations that want to restore confidence in the Web3 space. To access investment opportunities via the IRI application process, each participating organisation is required to commit capital in stablecoins or other tokens within public addresses to ensure transparency.

Initially, Binance will commit about $1 billion and plans to ramp up that amount to $2 billion in the near future if the need arises. So far, prominent Web3 organisations that have joined the initiative include Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group have collectively committed about $50 million. 

Each participant including Binance will make investment decisions independently of each other, on a deal-by-deal basis after reviewing investment opportunities. Binance expects some deals to be invested in unilaterally and others will be co-investments with all or some of the IRI participants.

Besides Web3 organisations, the IRI is also open to exploring other deal structures with traditional financial institutions that may want to participate but are unable to send stablecoins to a public address.

Binance has already received around 150 applications from companies seeking financial support under the IRI. Through the initiative, Binance and participating co-investor companies will support promising companies and projects that are facing significant, short-term, financial difficulties following the FTX fallout.

Collectively, Binance and its participating co-investors will be looking for projects that meet three criteria: innovation and long-term value creation, a clearly delineated and viable business model, and a laser focus on risk management.

Besides funding, Binance plans to provide founders and projects with comprehensive support from formation, technical execution, fundraising, and more to help them emerge unscathed from the crypto winter. 

Companies seeking financial support from the IRI can apply via an inquiry form while organisations interested in joining the IRI as a co-investor can reach out to Binance.

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