The Hashgraph Group Secures ADGM VC Fund Manager License

Swiss-based The Hashgraph Group (THG), a global firm that operates within the Hedera ecosystem, has secured a fund management license in the Abu Dhabi Global Market (ADGM), through its subsidiary, Hashgraph Ventures Manager Ltd. Hashgraph Ventures Manager, now licensed and regulated as a venture capital (VC) fund manager by the ADGM Financial Services Regulatory Authority (FSRA), is gearing up to launch the US$100 million Hashgraph Venture Fund-I, with Hashgraph Association (THA) contributing the first $20 million to the fund, accounting for 20 percent of its total size. 

The Hedera ecosystem, which THG is a part of, is a fully open-source, proof-of-stake public network and governing body for building and deploying decentralized applications. THG focuses on venture building and strategic investments to empower entrepreneurs, businesses, and governments in the Web3 economy. Based in Switzerland, Hashgraph Association (THA) is a non-profit that supports training, innovation, and research to foster economic inclusion and a sustainable digital future with positive environmental, social, and governance (ESG) impact. 

In an interview with Inc. Arabia, Stefan Deiss, co-founder and CEO of The Hashgraph Group, said, “The Hashgraph Group expects its Web3 venture capital fund to accelerate growth in deep tech across multiple industry verticals through direct investments in innovative startups and enterprises building in Web3, thus generating long-term economic growth in the MENA region, and beyond. Licensed and regulated by ADGM Financial Services Regulatory Authority (FSRA), The Hashgraph Venture Fund-I is global in scope and provides targeted capital injections to Web3 companies that are leveraging deep technologies in their operations.” 

Based in ADGM, the strategic Web3-focused fund aims to deliver compelling long-term returns by investing in innovative early-stage startups and established companies leveraging advanced technologies, such as artificial Intelligence (AI), blockchain, robotics, and quantum computing, to develop and commercialize enterprise-grade solutions for the Web3 economy. Additionally, selected projects will gain access to THG’s established Venture Studio Program (VSP), which provides hands-on support in engineering, product development, and market commercialization.  

Deiss shared his insights about choosing Abu Dhabi and the ADGM as a location for Hashgraph Group's expansion, and, more specifically, for the launch of a Web3-focused fund. "Abu Dhabi is the central meeting point for international venture capitalists and deep-tech companies developing Web3 solutions with broad applicability in other regions of the world that are non-traditional but still have massive markets. For Web3 companies in particular, the regulatory regime within ADGM offers legal certainty and fosters growth within a globally respected jurisdiction. With the progressive and comprehensive regulatory framework introduced by ADGM for Digital Assets and the enhancements to the FSRA regulatory framework for investment funds, ADGM is the ideal jurisdiction for The Hashgraph Group to expand operations and launch its Web3-focused venture capital fund (“Hashgraph Venture Fund-I”)," he said.  

According to Deiss, Abu Dhabi’s diverse talent pool, skilled in both global and local business practices, was a key factor in The Hashgraph Group establishing its presence in ADGM in 2023 and expanding operations across the UAE. 

Deiss emphasized the company’s approach to leveraging its expertise investing in Web3 to contribute to the regional investment landscape, saying, “With our experienced team of qualified professionals in the fields of venture building, venture capital, investment banking, technology, cybersecurity, legal and regulatory compliance, including our global pool of certified Web3 engineers, The Hashgraph Group enables institutional investors to co-invest in a quality pipeline of early-stage deep-tech deals going through the Venture Studios, which have already gone through an extensive due diligence process encompassing the business, financial, technical, and legal review.” 

Deiss stated that these efforts will enhance the deeptech investment landscape in MENA, offering co-investors strong returns through diversification and timely exits. 

He added, “THG will leverage its extensive expertise to strategically invest in Web3 infrastructure, FinTech infrastructure, and AI-powered decentralized applications, including B2B and B2B2C projects, interacting on Hedera as the world’s most cost-effective and energy-efficient DLT network that is governed by leading global organizations such as, Abrdn, Dell, Deutsche Telekom, Google, Hitachi, IBM, LG, Standard Bank, TATA, and Zain, just to name a few of the over 30 Hedera Governing Council members. THG understands the intricacies of deep-tech applications and how successful businesses operate in the Web3 economy, which enables us to make strong investment picks that will create economic growth in the MENA region for many years to come.” 

Deiss also discussed how cross-border investments are helping to deliver innovation across Europe and the MENA, saying, “As a Swiss-based international business, venture capital, and technology company, The Hashgraph Group brings extensive expertise in venture building and investments in Web3 through its diverse network of co-investment Venture Studios globally, which includes the Swiss/Saudi government-backed DeepTech Venture Studio signed with the Ministry of Investment of Saudi Arabia (MISA) earlier this year worth $250m over five years, the Digital Assets Venture Studio signed in strategic partnership with Qatar Finance City (QFC), and the Web3 Venture Studio signed in partnership with INNOVX in Morocco – a subsidiary of University Mohammed VI Polytechnic (UM6P), including various other cross-border investment initiatives between Switzerland and countries in MENA region.”  

He added that the Hashgraph Group’s participation in entrepreneurship exchange programs and deeptech academies facilitate knowledge-sharing and the exchange of entrepreneurial, technical, and managerial skills and experience between Europe and the MENA region. “Europe in general, and Switzerland specifically, are wonderful and proven launching pads for internationalization of MENA-based entities seeking access to both European and North American markets. The linkage between Europe and MENA also brings cultural and innovation exchange that are critical to amplifying cross-border growth potential, operational synergies, and new investment capital,” he added.