Digital Assets: Crypto-Native VC Firm Paradigm Launches $2.5B Fund

November 16, 2021 | Digital Assets, News, Venture Capital

Paradigm founders Matt Huang and Fred Ehrsam have succeeded in raising the largest crypto-focused venture fund in history.

Investment firm Paradigm believes that while the internet set the stage for innovation in the previous decades, crypto will define the next few ones. Accordingly, it invests in promising crypto companies, protocols and currencies of tomorrow. Its humongous new $2.5 billion venture fund, announced Monday, will invest in next-gen crypto companies and protocols, alongside the existing flagship fund. (Paradigm)

Huang and Ehrsam wrote in a blog: “This new fund and its size are reflective of crypto being the most exciting frontier in technology. Over the past decade, crypto has come a long way. But cryptocurrencies are still owned by less than ten percent of the global population. Decentralized financial systems have grown to hold over $100 billion in cumulative assets, yet still represent a small drop in the context of the traditional financial system.”

Paradigm, which launched only in 2018, has invested in startups such as FTX, Coinbase, BlockFi, Maker, Uniswap and Sky Mavis.

More recent investments include Solana-based lending protocol Jet Protocol, nonfungible token (NFT)-based battling game AI Arena, and NFT platforms including Royal and Fractional.

This latest fund puts in the shade the $2.2 billion fund raised in June this year by Andreessen Horowitz.

Related Story: Andreessen Horowitz Floats Third Crypto Fund For $2.2B

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