TLDR:
- Paradigm, a crypto venture capital firm, is seeking to raise up to $850 million for a new fund.
- This potential raise would be the largest for Paradigm since it raised a $2.5 billion fund in November 2021.
Crypto VC firm Paradigm is reportedly in discussions to raise between $750 million to $850 million for a new fund as cryptocurrency markets have been trending positively. If the raise is completed, it would be the largest for the firm since November 2021 when it raised a $2.5 billion fund during the peak of the last cycle’s bull run. In September, there were reports that Paradigm was aiming to raise a $1 billion fund.
Some of Paradigm’s notable investments include Coinbase, Fireblocks, Blast, Optimism, Uniswap, Gitcoin, and friend.tech. The firm recently led a funding round for Merkle Manufactory, pushing the firm’s valuation past $1 billion, resulting in unicorn status. However, Paradigm also invested in FTX, which collapsed, leading Paradigm to write down its investment to zero, expressing regret for the harm it caused to the ecosystem.
Despite a dip in VC funding for crypto projects in October 2023, recent months have seen an increase, with March recording $1.16 billion in fundraising. In 2024, infrastructure and decentralized finance (DeFi) sectors received the most funding. Nonfungible token (NFT)-related VC funding saw a significant drop last year. This decline is mirrored in the falling floor prices of major NFT collections like CryptoPunks and the Bored Ape Yacht Club.
