CZ’s $10B Investment Firm YZi Labs Eyes External Investor Access
Changpeng Zhao’s investment vehicle, YZi Labs, signals a major shift toward external funding opportunities. The $10 billion investment firm is weighing plans to open the fund to outside capital and external investors. This development marks a significant evolution for the family office that emerged from Binance Labs earlier this year.
YZi Labs Transformation From Binance Venture Arm
In January 2025, the former venture capital arm of Binance transformed into the family office of CZ and Binance CEO Yi He. Ella Zhang returned to lead the rebranded entity after helping establish the original Binance Labs. Her leadership brings extensive experience from successful portfolio companies, including Polygon, Injective Protocol, and CertiK.
The transformation represents more than a simple rebrand. YZi Labs operates independently from Binance while maintaining CZ’s strategic vision for emerging technologies. The firm manages Zhao’s personal fortune and funds from early Binance insiders, including co-founder Yi He.
External Investment Strategy Development for AI and Biotech Focus
Head Ella Zhang revealed that CZ plans to “eventually” make YZi Labs an external fund, particularly once sufficient experiences are obtained in the AI and biotech sectors. The firm targets early-stage projects across cryptocurrency, artificial intelligence, robotics, and biotechnology verticals.
YZi Labs already shows momentum in expanding beyond traditional Web3 investments. The firm has appointed Jane He as General Partner to lead biotechnology investments, marking strategic expansion beyond its traditional Web3 focus. This appointment signals a serious commitment to diversifying the investment portfolio.
The timing aligns with growing institutional interest in crypto-adjacent technologies. Previously raising $300 million through outside investment, YZi Labs considers expanding this strategy further. The firm’s substantial assets under management position it as a formidable player in the venture capital space.
CZ’s Portfolio Management Approach Under New Structure
Zhang noted that there is no immediate plan for Zhao to inject additional funds into YZi Labs. This approach suggests the firm operates with existing capital while exploring strategic growth opportunities. The family office model provides flexibility for long-term value creation without external pressure for quick returns.
The investment strategy emphasizes founder-centric philosophy and long-term value creation. Zhang’s background includes AI startup experience and training from Kleiner Perkins, bringing traditional venture capital discipline to the crypto investment space. Her approach focuses on visionary founders who demonstrate strong execution capabilities.
YZi Labs’ first major investment under the new structure targeted a token airdrop startup, Sign, with a $16 million funding round. This investment demonstrates the firm’s continued commitment to Web3 infrastructure while exploring broader technology applications.
Market Response to YZi Labs’ External Investment Plans
Industry observers view the potential external opening positively, given CZ’s track record and market position. The firm’s substantial asset base and strategic leadership create compelling investment opportunities for institutional capital. Head Ella Zhang noted that investor interest is strong, but the firm remains in the early stages of considering external partnerships.
The regulatory environment also supports this transition timing. Recent changes in cryptocurrency regulation create more favorable conditions for institutional investment in crypto-related ventures. YZi Labs benefits from established relationships and proven investment capabilities in navigating regulatory complexities.
Market conditions favor well-capitalized investment firms with diverse technology exposure. YZi Labs’ expansion into AI and biotech aligns with current investor appetite for transformative technology investments beyond traditional crypto assets.
Strategic Implications for Crypto Investment Landscape
YZi Labs’ potential external opening could reshape institutional access to premium crypto investments. The firm’s unique position bridges traditional venture capital and crypto-native opportunities. This combination attracts sophisticated investors seeking exposure to emerging technology sectors.
The move reflects broader industry maturation as crypto investments integrate with traditional asset management. Institutional investors increasingly seek professional management for alternative technology investments. YZi Labs offers proven expertise in early-stage technology evaluation and portfolio company support.
Success in attracting external capital could establish a model for other crypto-native investment firms. The transition from family office to external fund represents significant institutional validation for crypto investment strategies.
Conclusion
The crypto investment landscape benefits from experienced operators expanding their institutional reach. YZi Labs’ potential external availability creates additional opportunities for institutional capital allocation in emerging technologies.
