YZi Labs fund is weighing opening its $10 billion vehicle to outside investors amid rising institutional demand and a friendlier US regulatory tone; the SEC requested a private demo and the fund’s portfolio spans 230+ crypto and Web3 companies.
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YZi Labs explores external capital for its $10B fund, citing investor interest.
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SEC requested a private demo of the fund’s portfolio; regulators show a more open stance.
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YZi’s portfolio exceeds 230 companies (Dealroom); the fund accepted ~$300M in outside capital in 2022.
YZi Labs fund considers outside investors as SEC seeks demo and demand rises — read key takeaways and what it means for crypto investors.
CZ’s $10 billion fund, YZi Labs, is exploring external capital amid increasing investor demand and a more open regulatory stance under the Trump administration.
Changpeng “CZ” Zhao’s $10 billion investment firm YZi Labs is weighing plans to open the fund to outside capital and external investors. The firm manages Zhao’s personal wealth and capital from a small group of early insiders, and it is publicly exploring a transition to an external-facing vehicle.
YZi Labs accepted about $300 million in outside funding in 2022 but later returned a portion, saying the fund’s internal capital pool was already extensive. Ella Zhang, head of YZi Labs, told Financial Times that “there’s always a lot of external investors interested” and the team will “eventually consider turning it into an external-facing fund.”
What is the YZi Labs fund planning?
YZi Labs fund is evaluating whether to accept outside investors into a vehicle that currently manages CZ’s personal holdings and early insider capital. The firm is responding to growing institutional demand while coordinating with US regulators who have requested a private portfolio demo.
How would opening YZi Labs to external investors affect the crypto venture market?
Opening the fund could expand institutional capital into early-stage crypto and infrastructure startups, increasing competition for deal flow. YZi’s portfolio reportedly includes more than 230 companies (Dealroom) across LayerZero, Mysten Labs, Aptos Labs, Polygon and security firms like CertiK, giving potential external investors broad exposure to Web3 and infrastructure.
The move mirrors recent fundraises in the sector: Galaxy Digital raised $175 million for an externally backed venture fund in June 2025, exceeding its $150 million target. In 2022 YZi accepted roughly $300 million from outside sources but later returned part of that allocation.
Frequently Asked Questions
Will YZi Labs accept outside investors now?
YZi Labs is considering the move but has not committed. Ella Zhang indicated the fund will “eventually” consider external investors, but timing depends on governance readiness and market conditions.
Why did the SEC request a private demo of the portfolio?
The SEC’s private demo request signals regulatory engagement and due diligence. Officials want to review holdings and operational controls; regulators cited include SEC Chair Paul Atkins (appointed April 2025).
Key Takeaways
- Fund shift possible: YZi Labs is exploring opening its $10B vehicle to external capital.
- Regulatory engagement: The SEC requested a private demo, reflecting closer oversight and a more crypto-friendly posture.
- Market context: Institutional demand is rising; comparable funds like Galaxy Digital recently closed significant external capital.
Conclusion
YZi Labs’ consideration of outside investors marks a potential inflection point for crypto venture capital. With more than 230 portfolio companies and prior outside subscriptions, the fund must balance investor demand, governance, and regulatory transparency. Readers should monitor official statements from YZi Labs, Dealroom data, and coverage in Financial Times and Cointelegraph for updates.
Published: 2025-09-23 · Updated: 2025-09-23 · Author: COINOTAG
