YZi Labs May Open to External Investors

YZi Labs, the family office established by Binance co-founder Changpeng “CZ” Zhao, is contemplating opening up to external investors, according to a report from the Financial Times on Tuesday.

This $10 billion investment company, which transitioned from Binance Labs, is exploring the potential of converting into an investment fund, as shared by head of YZi Labs, Ella Zhang, in an interview.

Pursuing External Funding

“There’s always a lot of external investors interested, and we will eventually consider turning it into an external-facing fund,” Zhang expressed.

While YZi has significant expertise in Web3 investments, Zhang remarked that it is “still early” for the organization in the realms of artificial intelligence (AI) and biotechnology.

“We’re forming our team, and when we have that expertise…we’ll be open to external investors,” she added.

YZi Labs underwent a rebranding from being Binance’s venture capital arm to Zhao’s family office shortly after his release from prison, following a four-month sentence for not implementing an adequate know-your-customer program at Binance.

As part of his guilty plea, Zhao resigned as CEO of Binance and has shifted more focus towards YZi Labs, which manages the finances of both Zhao and fellow Binance co-founder Yi He, who is also his long-time partner.

Typically, family offices do not accept external investments as they are responsible for managing the wealth of a single family and do not solicit funds from outside sources.