TLDR:
- Paradigm, a crypto venture firm, aims to raise $850M for investments in a bullish market resurgence.
- Despite past setbacks, Paradigm is seeking new opportunities for investment in crypto companies and protocols.
Leading crypto venture firm Paradigm is looking to raise between $750 million and $850 million for new investments in the crypto industry. This fundraising drive comes amidst a market resurgence and growing optimism in the industry. Co-founded by Fred Ehrsam and Matt Huang, the firm previously had a $2.5 billion fund for investments in crypto companies and protocols. However, not all investments were successful, with a notable setback being the collapse of the crypto exchange FTX, resulting in a write-off of investments. Currently, Paradigm leads the funding round for Merkle Manufactory, the entity behind the Farcaster social network, and maintains investments in prominent firms like Coinbase, Blur, Compound, dYdX, and Citadel Securities.
Following a peak in the crypto market in May 2022, the industry experienced a decline in subsequent months. However, recent approval of spot bitcoin exchange-traded funds by the U.S. Securities and Exchange Commission has sparked a resurgence in the industry. This positive sentiment has led to an increase in venture capital funding for crypto projects, with Paradigm’s fundraising efforts being just one example of the renewed optimism in the market.
Paradigm is not the only firm seeking to capitalize on the market resurgence, as other venture capital firms like Hivemind Capital and Hack VC are also aiming to raise significant funds for investments. With crypto market conditions improving and regulatory clarity emerging, the industry is witnessing increased interest from investors looking to support infrastructure projects and technological advancements in the crypto space. Overall, Paradigm’s ambitious fundraising plans signal a growing optimism and increased activity in the crypto investment landscape as the industry continues to evolve and expand.
