VC Firm Paradigm Secures $850 Million For Crypto Projects In Latest Fundraise

Venture capital firm Paradigm has it is reported that has raised $850 million in its third fund, backing cryptocurrency startups led by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang.

Increased Capital Interest in Industry

Paradigm’s previous investments include prominent projects such as decentralized exchange (DEX) Uniswap and Optimism, a scaling solution Ethereum blockchain.

According to Bloomberg, with capital raised in the latest round of funding, Paradigm aims to contribute to early crypto work and plans to prioritize such projects in the future.

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The latest fundraising comes on the heels of Paradigm’s remarkable success in 2021 when it secured a $2.5 billion fund, its largest ever. investment vehicle at that time.

The current increase in interest and confidence among the venture capital community in the crypto industry has led to an increase in funds focused on cryptocurrency strategies.

Paradigm’s fundraising success reflects the growing market interest in crypto investments. Recent developments, such as the introduction of Bitcoin ETF and the upcoming approval of Ethereum-focused ETFs, fueled the industry’s expansion.

Hivemind Capital Joins Paradigm in the Funding Race

Paradigm isn’t the only company looking to raise money within the crypto space. Hivemind Capital, for example, is actively raising a $50 million private equity round mold free tokenn (NFT) fund.

Hack VC, which previously announced a $150 million fund, is also looking to raise more than $100 million for another investment vehicle. These initiatives highlight the growing interest and confidence in the potential of the crypto industry from venture capitalists.

Although Paradigm faced criticism, including temporarily removing cryptocurrency references from its website, the company corrected the situation and reaffirmed its commitment to the industry.

Fred Ehrsam transitioned from managing partner to general partner at the firm in October, further strengthening Paradigm’s commitment to promoting crypto innovation.

Despite the setbacks, Paradigm continues to actively support crypto projects. Recently, the company led an investment round in Merkle Manufactory, a company responsible for development software infrastructure of the Farcaster communications network.

The funding round valued Merkle Manufactory at around $1 billion, underscoring Paradigm’s continued belief in the power and value of the crypto industry.

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Overall, Paradigm’s successful fundraising efforts for its third fund show investors’ continued interest and confidence in supporting early cryptocurrency projects.

In recent months, the crypto industry has experienced consistent outflows, resulting in a decline in total market capitalization from its annual peak of $2.7 trillion to the current level of $2.3 trillion.

The market leading cryptocurrency has been the main driver of the recent price drop. It currently has a price of $66,700 and is down 3% in the last 24 hours. Similarly, Ethereum also declined, its price falling by 4% to around $3,475.

Featured image from DALL-E, chart from TradingView.com