TLDR:
Key Points:
- Fred Ehrsam and Matt Huang lead Paradigm, aiming to establish the largest industry fund post-crypto market downturn.
- Venture capital firms like Hivemind Capital and Hack VC also pursue crypto funds, reflecting a growing investment trend.
Paradigm, a leading crypto-focused investment firm, is reportedly in discussions to secure a new fund valued between $750 million and $850 million. This ambitious endeavor is spearheaded by Coinbase Global Inc. COIN co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang. If successful, this fund would be the largest in the industry since its recent downturn.
The recent rebound in cryptocurrency prices has ignited a fresh wave of fundraising activity among venture capitalists. Paradigm’s fundraising history includes a $2.5 billion fund raised in 2021, signaling a bullish outlook on the future of crypto.
Despite facing challenges such as a leadership shift and controversy surrounding investments in FTX, Paradigm remains committed to the crypto sector. The firm has continued to make significant investments, including one in Merkle Manufactory, valuing the startup at about $1 billion.
Other firms like Hivemind Capital and Hack VC are also on the fundraising trail for crypto-focused investments, highlighting a broader trend in venture capital circles.
These developments will likely be discussed at the upcoming Benzinga’s Future of Digital Assets conference, where industry insiders will converge to discuss the future trajectory of digital assets.
