VC Firm Paradigm Secures $850 Million For Crypto Projects In Latest Fundraise
June 13 2024 - 9:00PM
NEWSBTC
Venture capital firm Paradigm has reportedly raised $850 million
for its third fund, supporting early-stage cryptocurrency
initiatives led by Coinbase co-founder Fred Ehrsam and ex-Sequoia
Capital partner Matt Huang. Increased Venture Capital
Interest In The Industry Paradigm’s previous investments include
prominent projects like decentralized exchange (DEX) Uniswap and
Optimism, a scaling solution for the Ethereum blockchain.
According to Bloomberg, with the capital raised in the latest
funding round, Paradigm aims to contribute to early-stage crypto
work and plans to prioritize such projects in the future. Related
Reading: Solana On-Chain Indicators Suggests A Return Of Bullish
Sentiment, Is It Time To Buy SOL? The latest fundraising comes
after Paradigm’s notable achievement in 2021 when it secured a $2.5
billion fund, the largest-ever crypto investment vehicle at that
time. The current surge in interest and confidence within the
venture capital community towards the crypto industry has led to
increased funds focused on cryptocurrency strategies. Paradigm’s
fundraising success reflects the growing market appetite for crypto
investments. Recent developments, such as the introduction of
Bitcoin ETF and the impending approval of ETFs centered around
Ethereum, have fueled the industry’s expansion. Hivemind
Capital Joins Paradigm In Venture Funding Race Paradigm is not the
only venture firm seeking to raise funds within the crypto space.
Hivemind Capital, for instance, is actively raising a specialized
$50 million non-fungible token (NFT) fund. Hack VC, which
previously announced a $150 million fund, is also exploring
opportunities to raise over $100 million for another investment
vehicle. These initiatives highlight the increasing interest and
confidence in the potential of the crypto industry from venture
capitalists. While Paradigm faced criticism, including temporarily
removing cryptocurrency references from its website, the firm
rectified the situation and reaffirmed its commitment to the
industry. Fred Ehrsam transitioned from managing partner to
general partner at the firm in October, further solidifying
Paradigm’s dedication to fostering crypto innovation. Despite
setbacks, Paradigm continues to support crypto projects actively.
Recently, the firm led an investment round in Merkle Manufactory, a
company responsible for developing software infrastructure for the
Farcaster social media network. The funding round valued
Merkle Manufactory at approximately $1 billion, underscoring
Paradigm’s ongoing belief in the potential and value of the crypto
industry. Related Reading: Memecoin Fight: DADDY Surpasses MOTHER
Despite Insider Trading Activity Allegations Overall, Paradigm’s
successful fundraising efforts for its third fund demonstrate
investors’ continued interest and confidence in supporting
early-stage cryptocurrency projects. In recent months, the
crypto industry has experienced a consistent outflow of funds,
resulting in a decline in the total market capitalization from its
yearly peak of $2.7 trillion to the current level of $2.3 trillion.
The dominant cryptocurrency in the market has been the primary
driver of the recent price drops. It is currently valued at $66,700
and has experienced a 3% decrease within the past 24 hours.
Similarly, Ethereum has also declined, with its price dropping by
4% to approximately $3,475. Featured image from DALL-E, chart from
TradingView.com
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