TLDR:
- Paradigm is looking to raise between $750 million and $850 million for a new crypto fund
- Galaxy Digital is also raising $100 million for a crypto venture fund
Crypto venture capital firm Paradigm, co-founded by Coinbase co-founder Fred Ehrsam and former Sequoia partner Matt Huang, is in talks with investors to raise a significant amount of money for a new crypto fund. The firm is aiming to tap into institutional interest in the crypto space, following a lull in VC investing during the bear market. This new fund would be one of the largest raised since the market downturn last year.
Paradigm previously raised a record $2.5 billion crypto fund in 2021 but faced scrutiny last year for seeming to minimize its commitment to crypto. Despite setbacks, Paradigm has continued to support crypto projects, including investing in the software behind the decentralized social media platform Farcaster.
In addition to Paradigm, Mike Novogratz’s Galaxy Digital is also raising funds for a crypto venture fund. The firm, which previously invested its own money in various crypto startups, is now opening up the opportunity for outside investors to participate in Galaxy Ventures Fund I LP.
Crypto VC activity seems to be on the rise, with other firms like Hivemind Capital and Hack VC also raising significant funds for investment in the space. The VC ecosystem outlook appears positive, with an increase in investment projects and financing amounts in the crypto venture capital space in recent months.
