As investors continue to place their bets on resilient industries despite the current state of the world economy, Fuze, a provider of digital assets infrastructure and a member of Abu Dhabi’s Hub71 global innovation ecosystem, has raised $14 million in seed funding.
Along with Liberty City Ventures, a US-based startup capital fund and incubator, Further Ventures, an investment firm supported by ADQ, led the round.
Any bank, FinTech company, or traditional business can now provide customers with regulated digital asset solutions via their native apps, thanks to Fuze.
According to a corporate statement released on Wednesday, the money will fuel the startup’s progress as it acquires regulatory licensing, adds employees in key positions, keeps developing its technology skills, and quickens geographic expansion across the region.
Mohammed Yusuf, co-founder and CEO of Fuze, said, “We are excited to build the future of regulated financial infrastructure and digital assets out of the UAE.”
“Regulations have been crucial in putting the UAE in the forefront of the global digital assets industry.”
Hub71 supports the growth and development of tech startups through incentives and access to investors, corporations, governmental bodies, and academic institutions. The Abu Dhabi government and sovereign wealth fund Mubadala Investment Company backs Hub71.
According to Ahmad Alwan, deputy chief executive of Hub71, startups at the hub raised around Dh4.5 billion ($1.22 billion) in funding globally through the end of 2022.
According to him, Hub71 more than doubled its startup numbers to more than 200 last year and closed 41 deals for Dh160 million with corporate partners.
According to data platform Magnitt’s H1 2023 MENA Venture Capital report, fintech and e-commerce startups received most of the venture capital funding in the Middle East and North Africa during the first half of this year.
According to the research, financing deals in both sectors increased their weighting in the region’s overall ecosystem for venture financing, accounting for nearly 80% of all funding during the year’s first half.
Fuze was founded in December last year and was chosen to join Hub71 in June.
The seed round’s strategic financing and investor network will benefit the startup, “acting as a catalyst for the business as it builds the digital asset infrastructure that will drive the future of finance.”
Mr. Yusuf said, “We are developing a suite of products that responds to the expanding demand for regulated digital asset capabilities through trusted channels.”
With the help of the startup’s solutions, businesses may now sell digital assets like stablecoins, cryptocurrencies, central bank digital coins, and tokenized assets without worrying about regulatory burdens or blockchain complications.
According to a spokesperson of Further Ventures, the money given to Fuze represents an investment in digital assets.
The spokesman said, “The team at Fuze is highly skilled and has a clear ambition to establish a trusted, world-class digital assets solution.
Technology that empowers various stakeholders is essential for the financial ecosystem’s future.
A $200 million fund was introduced by Further Ideas last September to co-create and support business ideas.
The fund, anchored by Abu Dhabi holding company ADQ, will concentrate on creating startups in the supply chain, FinTech, and digital asset sectors.
According to the company at the time, it offers a “unique offering” out of Abu Dhabi for entrepreneurs wishing to launch businesses in “regulated or frontier industries.”
The venture capital firm has a committed team that handles talent sourcing and recruitment, legal and regulatory support, operations, business growth facilities, and capital investment.
As a part of Further’s enormous network, it gives startups access to some of the biggest organizations in the Mena region and venture builders worldwide.
Further, it focuses on digital asset payment products, blockchain asset custody and security solutions, markets, and wallets, among other things, in the domain of digital assets.