Paradigm Closes $850 Million Fund for Crypto and Blockchain Investments
Summary:
Paradigm, a venture capital firm, has secured an $850 million fund to invest in early-stage crypto and blockchain projects. The firm has a history of investing in prominent crypto firms, including Coinbase, and Uniswap. This third round of funding is the largest since Paradigm's $2.5 billion fund in November 2021. Despite the failure of its $278 million investment in the defunct FTX exchange, the firm maintains its faith in crypto's future potential. Reports indicate another firm, Pantera Capital, is planning a similar fund aimed to raise over $1 billion.
The investment company, Paradigm, has successfully finalized its third round of funding dedicated to investing in early-stage crypto and blockchain initiatives. The completion of this $850 million fund, as declared on June 13, solidifies Paradigm's standing in the crypto sector as one of the most significant fundraisers till now. The groundwork for this new fund was laid in the past few months during the resurgence of the crypto markets. When Paradigm was established in 2018, there was a firm belief among the founders that the upcoming decades would witness immense technical and economical transformations due to crypto. After six years, this belief is even more ingrained, according to the co-founder and managing partner of Paradigm, Matt Huang. Paradigm has stakes in several renowned crypto organizations, including Coinbase, Fireblocks, Blast, Optimism, Uniswap, MakerDAO, Chainalysis, MoonPay, Gitcoin, and Friend.tech, among others. However, the firm lost $278 million when it invested in the recently bankrupt cryptocurrency exchange, FTX, leading to a total write-off of the investment in November 2022. Looking back to September 2023, there had been fervent speculations regarding the size of this new fund. The Information had initially reported that the firm aimed to generate $1 billion. By April, Bloomberg hinted that Paradigm was considering a fundraise between $750 million and $850 million after discussions with potential investors. This latest fund is Paradigm’s highest raise since its successful $2.5 billion fund in November 2021. As per Galaxy Research’s compiled data, the volume of venture capital investments in crypto and blockchain startups has gone up significantly, with $2.49 billion spread across 603 deals in Q1 2024. This marks a dramatic 29% surge in funding and 68% increase in deal quantity. Another firm in the venture capital domain looking to raise funds for a new crypto fund is Pantera Capital. Reports suggest the company is on the hunt for over $1 billion for a novel fund that would provide ingress to a wide range of blockchain assets. This new fund is set to be launched in April 2025.
Published At
6/13/2024 10:04:03 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.