Paradigm has paid $850M for a third crypto fund.
Venture capital firm Paradigm has closed a third fund to invest in early-stage crypto and blockchain-based projects.
According to an announcement made on June 13, the VC firm has completed an $850 million investment fund, making it one of the largest crypto fundraisings in history. Following the resurgence in crypto markets, Paradigm has been discussing the new fund for the past few months.
“When we founded Paradigm in 2018, we believed that crypto would be one of the most important technical and economic changes of the next decade. Six years later, that belief has grown stronger,” said Matt Huang, founder and managing partner of Paradigm.
Paradigm is an investor in several prominent crypto companies, including Coinbase, Fireblocks, Blast, Optimism, Uniswap, MakerDAO, Chainalysis, MoonPay, Gitcoin and Friend.tech. The company has just invested $278 million in the fallen crypto exchange FTX. In November 2022, he wrote down the investment to zero.
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Speculation about the size of the new fund has been circulating for months. By September 2023, The Information reported that the company is targeting to raise $1 billion. A few months later, in April, Bloomberg reported that Paradigm was discussing prospects of raising $750 million to $850 million with investors.
The new fund is Paradigm's largest since closing a $2.5 billion fund in November 2021.
Venture capital investments in crypto and blockchain startups have increased significantly. According to data compiled by Galaxy Research, investors injected $2.49 billion across 603 deals in the first quarter of 2024, with 29% in funding and 68% in deal size.
Another venture firm raising capital for a new crypto fund is Pantera Capital. The company is reportedly seeking more than $1 billion for a new fund that will provide exposure to the “full spectrum” of blockchain assets. The fund is scheduled to launch in April 2025.
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