- Crypto VC firm Paradigm is in talks to raise between $750 million and $850 million for a new fund
- Paradigm was a major investor in the bankrupt crypto exchange FTX
- More venture capitalists are raising new funds following a crypto market rebound
Crypto-focused venture capital firm Paradigm is in discussions with investors to raise between $750 million and $850 million for a new fund, according to people familiar with the matter. This would be one of the largest fundraising efforts in the industry since the recent crypto downturn.
Paradigm Seeks to Raise One of Crypto’s Largest Funds Post-Crash
The new Paradigm fund is aiming to be one of the biggest in crypto since the market decline over the past year. The firm, founded by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang, is a major player in the crypto investment space.
If the fundraising target is met, it would be a sign of renewed confidence in crypto following the high-profile collapse of FTX and subsequent contagion throughout the industry. Paradigm itself was a large investor in FTX prior to its bankruptcy.
Details on Paradigm’s Fundraising Efforts
According to anonymous sources, Paradigm is speaking to investors about raising the new fund. The targeted amount is between $750 million and $850 million.
The sources asked not to be identified since the discussions are private. Paradigm has not publicly confirmed its fundraising efforts.
The new fund would come after Paradigm closed its last fund with $2.5 billion in 2021. That was the largest-ever crypto-focused venture fund at the time.
Outlook for Crypto Investments Post-Crash
The crypto market saw a dramatic decline in 2022, with major collapses like FTX and Three Arrows Capital. Investor appetite for digital assets cooled significantly as a result.
However, crypto advocates see long-term potential in blockchain technology and crypto networks. Major firms like Paradigm are looking to take advantage of lower asset prices to make new investments.
If Paradigm successfully raises its new targeted fund, it would signal renewed institutional interest in crypto ventures following the shakeout. But some analysts say it may still take time to rebuild trust after recent volatility.
