Bloomberg reported that cryptocurrency venture capital firm Paradigm is seeking to raise a new crypto fund of up to $850 million, which would be the largest cryptocurrency fund since May 2022. Additionally, with Bitcoin reaching a new high in March, the amount of cryptocurrency funding also grew by 52% that month.
Table of Contents
Toggle
Paradigm seeks to raise $850 million, Bloomberg: the largest scale in two years
Review of Paradigm investment projects
52% growth in cryptocurrency funding in March
With the recovery of the cryptocurrency market since 2023, venture capital firms are also eager to find the golden opportunity for investment.
Well-known cryptocurrency venture capital firm Paradigm has reportedly been in discussions with investors to raise up to $850 million for a crypto fund.
Advertisement – Continue reading below
Previously, Paradigm’s last venture fund was established in November 2021, with a total amount of $250 million.
Citing sources familiar with the matter, Bloomberg stated that this would be the largest-scale fundraising in nearly two years:
If Paradigm successfully completes this fundraising, it will be the largest cryptocurrency fund since May 2022.
It is reported that another venture capital giant, Andreessen Horowitz (a16z), raised an astonishing $4.5 billion at that time.
Previously, Paradigm’s more widely known investments in the cryptocurrency field included Coinbase, Blast, Optimism, Uniswap, and friend.tech.
However, the company has also experienced investment failures, raising $278 million for the now-closed FTX exchange from 2021 to 2022. Co-founder Matthew Huang admitted to this:
Insufficient due diligence and being attracted by the rapid market share expansion of FTX, as well as excessive reliance on information provided unilaterally by SBF.
(Admitting due diligence failure and excessive trust in SBF, Venture Capital Paradigm: SBF is resistant to others joining the board)
It is understood that Paradigm led the Series A financing for ZK startup Succinct Labs this month, raising $55 million for them.
According to Rootdata, with Bitcoin reaching a new high in March, cryptocurrency funding has seen continuous growth for three consecutive months, with a 52% increase in March, reaching a total financing amount of $1.16 billion.
It is reported that this is the second-highest amount since 2023, second only to $1.29 billion in November last year.
In terms of domains, most of the funds were injected into on-chain infrastructure and DeFi projects, with the fewest going to NFT projects. In terms of blockchains, funds were mostly invested in Ethereum, followed by Polygon and BNB Chain. In terms of regions, about one-third of the funds were concentrated in the United States.
In addition, over 50% of the investment amount fell between $1 million and $5 million, with only about 10% of investments exceeding $20 million.
a16z
FTX
Matthew Huang
Paradigm
Rootdata
cryptocurrency venture capital
financing
Further reading
FTX a year after the disaster, where did the employees go + supernatural stories feat. Natalie
FTX founder SBF interviewed after the audit: Never thought I would break the law, troubled by what was lost every day