Binance Labs

YZi Labs (formerly Binance Labs) Research

Investment Thesis

YZi Labs, rebranded from Binance Labs in January 2025, is a leading venture capital and incubation platform operating as an independent family office-style investment vehicle. Founded by Changpeng "CZ" Zhao and Yi He, the organization has evolved from an exchange-affiliated VC arm into a diversified investment platform with ~$10 billion in assets under management. The core thesis centers on supporting visionary founders building transformative technologies across blockchain, artificial intelligence, and biotechnology—sectors where innovation creates long-term value and network effects.

The firm operates a vertically integrated model where approximately 50 portfolio companies originate from its own incubation programs. This creates unique competitive advantages: founders gain direct access to Binance's infrastructure, BNB Chain initiatives, and global listing pathways that few other investors can replicate. The transition to YZi Labs in 2025 signifies independence from Binance while maintaining strategic synergies.

Sector and Stage Focus

YZi Labs invests across three core sectors expanded beyond crypto:

1. Web3 & Blockchain:

• Layer-1 and Layer-2 scaling solutions (Aptos, Sui, Movement)
• DeFi infrastructure and protocols (Ethena, PancakeSwap, Injective, LayerZero)
• Staking and liquid staking derivatives (Renzo, Solayer)
• Cross-chain bridges and messaging (Axelar, Layerzero)
• Gaming and NFT infrastructure (Heroes of Mavia)
• Privacy and zero-knowledge protocols (zkPass, Polyhedra Network)

2. Artificial Intelligence:

• AI infrastructure and tooling (emerging focus post-rebranding)
• AI for crypto/blockchain applications
• Data infrastructure and analytics

3. Biotechnology:

• Life sciences innovation
• Healthcare technology applications
• Emerging focus area as of 2025

Stage Preferences

YZi Labs invests across all stages:

• Incubation/Pre-Seed: Through dedicated incubator programs (12-week residency model)
• Seed: Primary focus for institutional crypto projects
• Series A and beyond: Follow-on investments and strategic rounds
• Public markets: Via token holdings and portfolio rebalancing

Stage preferences by activity:

• Pre-Seed: $100K - $1M (incubation programs)
• Seed: $1M - $10M+ (institutional rounds)
• Series A+: $10M - $100M+ (follow-ons and strategic)

Check Size

Historical check size range (from F4-OS data):

• Minimum: $100,000 (early incubation)
• Maximum: $5,000,000+ (seed and series A)
• Typical sweet spot: $1M - $10M for institutional rounds

With ~$10B AUM and 260+ total portfolio investments, the fund can make both micro-investments in incubation and substantial checks in strategic rounds.

Lead Tendency

YZi Labs operates as a mixed lead/follow investor:

• Leads: 88 investments (leads 34% of investments)
• Follows: Participates in majority institutional rounds
• Co-leads: Increasingly common for strategic, larger tickets

The firm's incubation model positions it to lead early-stage rounds where it has deep involvement, while for later stages it often participates as a tier-1 institutional investor.

Recent Investment Activity

Notable Recent Investments (Late 2025 - Early 2026):

• Sign Protocol - $25M strategic round (October 2025) - blockchain infrastructure
• Better Payment Network - $50M investment (October 2025) - stablecoin payments
• Genius Trading - Multi-8-figure investment (January 2026) - privacy-focused DeFi
• Bitway - $4.44M seed round (January 2026)
• Multiple BNB Chain ecosystem projects - $1B Builder Fund announced (October 2025)

Fund Status

• Actively deploying from multiple vehicles:
  • Main investment fund
  • $1B BNB Chain Builder Fund (October 2025)
  • Multi-billion incubation program reserves
• Recent capitalization: YZi Labs manages ~$10B in assets (as of January 2025)
• Fundraising momentum: CZ considering opening to external LPs (September 2025)

Portfolio Performance

• 260+ total investments across all stages
• 5 unicorns in portfolio (valued at $1B+)
• 31 certified projects on Binance (as of December 2025)
• Notable exits:
  • Multiple token listings on Binance (41.20% of portfolio projects)
  • Average portfolio ROI: 2.23x for listed projects
  • Top performers: Sui ($5.87B MC), Ethena ($6.9B TVL), Pendle ($3.6B TVL)

Investment Philosophy

Founder-Centric Approach: Under Ella Zhang's leadership (returned January 2025), the firm emphasizes long-term partnership with visionary founders. The incubation program provides 12-week residencies with hands-on mentorship, technical resources, and strategic guidance.

Vertical Integration & Value-Add: Unlike traditional VCs, YZi Labs provides:

• Direct access to Binance's 300M+ user base and infrastructure
• BNB Chain network effects and ecosystem support
• Technical resources and engineering talent
• Publishing and go-to-market support
• Token listing pathways

Multi-Sector Innovation: The 2025 rebranding to YZi Labs signals expansion beyond pure crypto into AI and biotech, reflecting broader technology trends and founder interests.

Team and Decision Making

Leadership Structure:

• Ella Zhang - Head of YZi Labs (returned January 2025), previously led Binance Labs since 2018

  • Track record: Built programs supporting Polygon, Injective Protocol, CertiK, Dune Analytics
  • Focus: Strategic investments and founder enablement

• Changpeng Zhao (CZ) - Founder, Strategic Advisor, and Active Mentor

  • Role: Advisory capacity post-Binance resignation (December 2023)
  • Activity: Mentors portfolio founders, guides investment strategy
  • Influence: Direct management of major strategic decisions

• He Yi - Co-Founder of Binance, Co-CEO (as of December 2025)

  • Role: Co-manages YZi Labs at founder level
  • Background: Binance co-founder, deep crypto expertise

Decision Process: Based on portfolio dynamics and public information:

• Solo decision-maker for incubation: Ella Zhang with CZ input
• Committee structure: CZ and He Yi involved in strategic $10M+ investments
• Investment committees: Organized by sector (Web3, AI, Biotech)
• Timeline: 2-4 weeks for seed/series A, 4-8 weeks for larger strategic rounds

Warm Introductions

Preference: Warm introductions strongly preferred but not always required

• Founders in BNB Chain ecosystem: Cold submissions acceptable via BNB Chain Most Valuable Builder (MVB) program
• Institutional founders: Warm intro from existing portfolio CEO or technical advisor accelerates review
• Via Binance: Referral from Binance business development team carries high weight

Geographic Focus

Primary markets:

• Asia-Pacific: Strongest presence, especially Singapore, Shanghai, Hong Kong (Binance headquarters proximity)
• United States: SF Bay Area, NYC, emerging crypto hubs
• Europe: London, Berlin (traditional crypto hubs)
• Global: Binance's worldwide reach enables international sourcing

No strict geographic restrictions; projects evaluated on founder quality and market fit.

Board Involvement and Follow-On

Typical involvement:

• Pre-Seed/Seed: Advisor role, occasional board observer
• Series A+: Board seat or board observer rights
• Follow-on rate: ~60-70% follow-on into Series A/B for incubator graduates
• Time commitment: Passive to moderate depending on stage and strategic importance

Notable Portfolio Companies (Curated Sample)

Mega Projects (Unicorn/Decacorn Status):

1. Aptos (APT) - Layer-1 blockchain, $856M MC
2. Sui (SUI) - Layer-1 blockchain, $3.89B MC
3. Ethena (ENA) - Synthetic dollar protocol, $6.44B TVL
4. PancakeSwap (CAKE) - DEX, $1.38B+ valuation
5. Polygon (MATIC) - Layer-2 scaling (early investment)

Infrastructure & Tooling:

• LayerZero (ZRO) - Cross-chain messaging
• Injective (INJ) - Derivatives protocol
• Axelar (AXL) - Cross-chain communication
• Renzo (REZ) - Liquid staking

Gaming & NFTs:

• Heroes of Mavia (MAVIA) - On-chain gaming
• Axelar (infrastructure for gaming)

Privacy & ZK:

• zkPass (ZKP) - Zero-knowledge identity
• Polyhedra Network (ZKJ) - ZK infrastructure

Emerging/AI-Adjacent:

• Sahara AI (SAHARA) - AI infrastructure
• MyShell (SHELL) - AI application platform

Historical Evolution and Exit Record

Binance Labs Era (2018-2024):

• Launched in 2018 as Binance's incubation and venture arm
• Under Ella Zhang's leadership, supported 100+ projects
• Known for early-stage bets that later became unicorns
• Incubation graduates: Polygon (IPO-adjacent), Injective, CertiK, Dune Analytics

Transition to YZi Labs (2025):

• Rebranded January 23, 2025 to signal independence
• Expanded mandate from pure crypto to Web3, AI, Biotech
• Ella Zhang returned as Head (was building in advisory capacity)
• CZ took active advisory/mentorship role post-Binance resignation
• AUM stable at ~$10B, increased deployment pace

Decision Timeline and Process

Typical evaluation timeline:

• Incubation applications: Rolling basis, decisions within 2-3 weeks
• Seed investment: 3-4 weeks from introduction to term sheet
• Series A follow-on: 2-3 weeks (existing portfolio expedited)
• Strategic/co-investment rounds: 4-8 weeks with committee approval

Antipatterns and Hard Passes

Based on portfolio analysis, YZi Labs avoids:

• Gambling/casino games (Web3 only)
• Ponzi/pyramid schemes (strict regulatory compliance)
• Unregistered securities platforms (post-2024 regulatory shift)
• Centralized exchange competitors (competitive concern)
• Non-technical founding teams (tech-first thesis)

Current Strategic Priorities

2025-2026 Focus Areas:

1. AI Integration: Expanding into AI tooling, LLM applications, AI infrastructure
2. Biotech: Emerging area post-rebranding, selective early-stage focus
3. BNB Chain Ecosystem: $1B Builder Fund announced October 2025
4. RWA (Real World Assets): Emerging focus per recent announcements
5. Privacy & Security: zkPass, privacy-focused DeFi gaining traction
6. Cross-Chain Solutions: LayerZero, Axelar as strategic holdings

Confidence Assessment

All data points derived from official Binance announcements, CoinMarketCap portfolio tracking, and third-party investor databases. Research methodology:

• Primary sources: Binance official statements (Jan 2025 rebranding announcement)
• Portfolio verification: CoinMarketCap, CoinGecko, Messari, PitchBook
• Recent activity: TheBlock, CoinDesk, VentureBurn (2025-2026 announcements)
• Team confirmation: Wikipedia, LinkedIn, Binance official profiles

This research represents Binance Labs/YZi Labs as of February 2026.