Venture capital firm Paradigm has closed its third fund, securing $850 million to invest in early-stage projects. This substantial capital raise marks one of the largest in the history of crypto-focused funds.
Announced on June 13, the completion of this $850 million investment fund underscores Paradigm’s ongoing commitment to the crypto space. The firm, co-founded by Matt Huang and Fred Ehrsam in 2018, has been discussing this new fund for several months, particularly as the crypto markets have shown signs of recovery.
“When we founded Paradigm in 2018, we believed that crypto would be one of the most important technical and economic shifts of the coming decades. Six years later, that belief has only gotten stronger,” said Matt Huang, co-founder and managing partner of Paradigm.
Paradigm has a robust portfolio, having invested in several high-profile crypto companies. Their investments include Coinbase, Fireblocks, Blast, Optimism, Uniswap, MakerDAO, Chainalysis, MoonPay, Gitcoin, and Friend.tech. The crypto and blockchain sectors have seen a surge in venture capital investments. Data from Galaxy Research shows that investors poured $2.49 billion across 603 deals in the first quarter of 2024. This represents a 29% increase in funding and a 68% rise in deal volume compared to previous quarters, highlighting the growing interest and confidence in these emerging technologies.
In addition to Paradigm, other venture capital firms are also ramping up their crypto investments. Pantera Capital, for instance, is reportedly seeking to raise over $1 billion for a new fund that will offer exposure to a “full spectrum” of blockchain assets. This fund is expected to launch in April 2025.