Paradigm Secures $850 Million for Third Crypto Fund

Paradigm has been talking about its new cryptocurrency fund for the past few months as the markets have recovered.

Venture capital company Paradigm has closed the third fund, which aims to make early investments in cryptocurrency and blockchain-based ventures.

The venture capital firm said on June 13 that it has successfully raised $850 million for an investment fund, which ranks among the most significant cryptocurrency fund raises ever. Following the recovery in the cryptocurrency markets, Paradigm has been talking about the new fund for the past few months.

“We thought that cryptocurrency would be one of the most significant technological and economic developments of the next several decades when we started Paradigm in 2018.” According to Matt Huang, managing partner and co-founder of Paradigm, that belief only grew stronger six years later.

Paradigm’s Investments

Paradigm has invested in well-known cryptocurrency firms: Coinbase, Fireblocks, Blast, Optimism, Uniswap, MakerDAO, Chainalysis, MoonPay, Gitcoin, and Friend. Tech. Additionally, the company put $278 million into the now-defunct cryptocurrency exchange FTX. It paid down its investment to zero in November 2022.

The size of the new fund has been the subject of months’ worth of speculation. The information stated in September 2023 that the company intended to raise $1 billion. Bloomberg revealed a few months later, in April, that Paradigm was in talks with investors about the possibility of obtaining between $750 million and $850 million.

The company has raised the most money with this new fund since it closed a $2.5 billion fund in November 2021.

The amount of venture money invested in blockchain and cryptocurrency firms has surged dramatically. In the first quarter of 2024, investors invested $2.49 billion in 603 agreements, up 29% in capital and 68% in deal volume, according to statistics provided by Galaxy Research.

Pantera Capital is another venture capital firm seeking money for a new cryptocurrency fund. It is said that the corporation is looking to raise over $1 billion for a new fund that would provide investors access to a “full spectrum” of blockchain assets. The fund will open for business in April 2025.