ADGM Issues Licence to Klumi Ventures to Invest in UAE’s Web3 Start-ups

Klumi Ventures, the Abu Dhabi-based blockchain venture capital, became the first Web3 venture capital firm to be regulated by the Abu Dhabi Global Market (ADGM) after receiving a license from ADGM’s regulator, the Financial Services Regulatory Authority (FSRA).

The license allows Klumi to invest in tokens and equity investments in early stage Web3 start-ups. In fact, Klumi Ventures received in-principle approval from ADGM last year, the firm’s COO Manal Rifki said during the Future Blockchain Summit held in October last year.

The company further said that this event heralds a new era of innovation and investment opportunities in the region’s digital asset ecosystem, as Klumi Ventures leads the charge in fostering growth and empowerment in the Web3 sector.

Klumi Ventures’ Senior Executive Officer Kristiina Lumeste said that they were honoured to be at the forefront of shaping the UAE’s digital asset landscape as the first Web3 venture capital firm regulated by the FSRA.

“We are proud to lead this transformative journey, shaping the future of Web3 investment and entrepreneurship in the Middle East and beyond. With ADGM’s support and the dynamic ecosystem in Abu Dhabi, we are dedicated to unlocking new avenues of growth and opportunity for Web3 start-ups,” she said.

Two Specialised Funds

Klumi Ventures is launching two specialised funds, – the $15 million Qualified Investors Fund which is slated for pre-seed and seed investments, providing early-stage Web3 start-ups with crucial capital and support to realise their vision and scale their operations effectively. The flagship $100 million fund is tailored to emerge technologies and decentralised sectors.

“Abu Dhabi’s status as a global leading city and the ‘Capital of Capital’ presents unparalleled opportunities for growth and innovation in the digital asset space,” Ktistiina added.

ADGM’s Chief of Market Development Arvind Ramamurthy, while welcoming the Klumi to ADGM’s dynamic and progressive international financial centre, said that its establishment as a Web3 Venture Capital Fund and bringing specialised funds that fill a critical gap in the Web3 sector’s needs, positions Klumi strongly to harness the immense potential of this sector, not only in Abu Dhabi but also throughout the region.

“Coupled with ADGM’s regulatory capabilities, Klumi’s strategic approach can contribute greatly to the growth of the Web3 sector in the UAE and beyond. We look forward to Klumi’s journey in the UAE’s evolving digital asset landscape,” Ramamurthy added.

According to the data from ADGM, the number of firms in the centre rose from 1,378 in 2022 to 1,825 in 2023. The new companies that were registered with ADGM last year included Brevan Howard, Ardian, Goldman Sachs, Blackstone, SBI Capital, Asian Infrastructure Investment Bank, Apollo and Vibrant Capital.

Several investment firms and hedge funds were also set up within ADGM last year, with the total number of asset managers reaching 102, managing 141 funds and another 125 firms were waiting for registration, ADGM said.

96 fund and asset management firms and funds have registered and operated in ADGM, highlighting the city’s growing importance as a financial hub since May 2023.