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TLDR:
- Crypto-focused VC firm Paradigm is working to raise between $750 million and $850 million for a new fund.
- Since the industry’s peak in May 2022, VC investment in the crypto industry has dropped significantly due to scandals and regulatory issues.
Crypto-focused venture capital (VC) firm Paradigm is looking to raise a new fund, aiming for between $750 million and $850 million. This effort comes after the firm raised a record-breaking $2.5 billion crypto fund in 2021. If successful, this new fund would be the largest seen in the crypto VC industry since a drop in the sector following the high point in May 2022.
VC investment in the crypto industry saw a significant decline in 2023, totaling only $9.5 billion compared to the previous year’s total. Scandals and regulatory issues played a significant role, but now with crypto making a comeback, more VC firms like Hivemind Capital and Hack VC are looking to raise new funds. Hack VC, for example, raised $150 million for Web3 investments in February, emphasizing the importance of infrastructural shifts in Web3 for mainstream adoption.
VC investors, particularly in crypto and artificial intelligence (AI), are focusing on infrastructure plays rather than service providers. This shift in investment strategy is seen as a way to build foundational ecosystems for long-term sustainability and growth.
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