Paradigm Launches $ 2.5 Billion Fund for ‘Next Generation’ of Crypto Firms


The VC, started by one of the founders of Coinbase, launched what would be the largest crypto fund ever raised.

Paradigm has launched a new $ 2.5 billion fund to support the “next generation of crypto companies and protocols.”

This crypto-focused VC was founded in 2018 by Matt Huang and Fred Ehrsam. Huang was previously a partner of Sequoia Capital and led its cryptocurrency investments, while Ehrsam was the co-founder of the Coinbase cryptocurrency exchange, which went public earlier this year.

In a blog post this week, Paradigm’s co-founders and managing partners wrote that the new fund and its size “reflects the fact that crypto is the most exciting frontier in technology.”

The San Francisco-based VC was created to invest in ‘disruptive’ crypto companies, protocols and currencies, providing support ranging from $ 1 million to over $ 100 million.

Specifically, the co-founders said they see the potential in this technology to fundamentally change money, change financial systems with decentralized finance (DeFi), and change the internet more broadly with decentralized Web3 applications.

Companies already in its portfolio include Coinbase, the blockchain-based payment system Diem, and crypto-finance player BlockFi.

Earlier this year, he led the $ 100 million funding round for blockchain startup Chainalysis and participated in the $ 250 million funding round for the Bitso cryptocurrency exchange.

Paradigm’s new $ 2.5 billion fund is big news for the crypto investment space and is said to be the largest VC crypto fund ever to be raised.

It beats the $ 2.2 billion fund launched by Silicon Valley heavyweight Andreessen Horowitz earlier this year for investing in crypto networks, as part of a wider campaign to dominate the crypto industry .

With its new mega-fund, Paradigm said it will continue to support companies at different stages of growth, from “just a glimmer of thought” to “category leaders at a later stage.”

“We have immersed ourselves in the frontier of protocol research and Web3 culture,” Huang and Ehrsam wrote.

“And we’ve assembled a team of experts in research, engineering, security, talent, communications and marketing, law and policy, and everything crypto entrepreneurs might need to move their projects forward. “

The young VC now has around thirty employees, according to its website.

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