Paradigm has successfully closed its third venture capital fund

Paradigm Crypto Fund
Paradigm has successfully closed its third venture capital fund aimed at early-stage investments in crypto and blockchain projects, raising $850 million.

This marks one of the largest fund raises in crypto history, as announced on June 13. The decision to launch the fund was influenced by the recent recovery in crypto markets.

Founded in 2018 with a vision of crypto’s transformative potential, Paradigm’s co-founder and managing partner, Matt Huang, emphasized the firm’s strengthened belief in the sector over the past six years.

Paradigm has a track record of backing prominent crypto firms such as Coinbase, Fireblocks, and Uniswap, among others. Notably, it invested $278 million in FTX, though this investment was later written off entirely following the exchange’s collapse in November 2022.

Speculation regarding the fund’s size had been circulating for months, with reports in September 2023 suggesting a target of $1 billion, and subsequent discussions settling between $750 million to $850 million by April 2024. This latest fund is Paradigm’s largest since closing a $2.5 billion fund in November 2021.

The broader venture capital landscape in crypto and blockchain has also seen significant growth, with Galaxy Research reporting a 29% increase in funding to $2.49 billion across 603 deals in the first quarter of 2024, alongside a 68% rise in deal volume.

Pantera Capital is another firm gearing up to launch a substantial new crypto fund, reportedly aiming to raise over $1 billion by April 2025. This fund seeks to provide exposure across the full spectrum of blockchain assets.

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