The venture capital company Paradigm is looking for investors to establish a new investment fund, with the aim of riding the next rise in the crypto market
The VC, who distinguished himself in the last bull market for raising another important speculative fund, is now trying to raise an amount between 750 and 850 million dollars.
Meanwhile, Paradigm continues to dedicate resources to investments in emerging projects in the sector.
All the details below.
Summary
Paradigm venture capital: negotiations with investors have begun to establish a crypto fund
Paradigm, a well-known venture company operating in the crypto world, is trying to raise between 750 and 850 million dollars from its partners in order to establish a new investment fund.
As reported by Bloomberg yesterday, if the project were to succeed, it would be the richest speculative fund ever established by the capital company since the FTX collapse in November 2022.
In 2021, Paradigm had raised a whopping $2.5 billion to take advantage of the expected increases in the crypto market, managing to end the year with a portfolio growth of 343%.
The following year, a drawdown of 34% reduced the group’s earnings, which despite the various market setbacks, managed to bring home a significant profit.
Now, Paradigm’s willingness to raise capital from private investors or other venture firms, demonstrates the enthusiasm of the crypto sector for a market that could really perform well in 2024.
The establishment of the new fund would definitely help grow the entire cryptographic industry, pushing it with a rich speculative activity, especially for projects in their embryonic stages.
We remind you that the founders of Paradigm, Fred Ehrsam and Matt Huang, have previous experience in the world of cryptocurrencies having held prominent roles in various sectors of decentralized finance, and they know what they are talking about when it comes to investment timing.
Ehrsam was a co-founder of Coinbase while Huang worked for a few years at the venture Sequoia Capital searching for gems in the early stage phases.
The second, recently published a study on the Paradigm blog post, where he analyzes the evolution of cryptocurrency market cycles and explains how to survive the increasingly constant changes.
The potential agreement gives hope for the recovery of the cryptocurrency market and opens a new chapter for Paradigm which will try to recover after the embarrassing incident of FTX in 2022 that caused many difficulties for the private company.
Paradigm had, in fact, invested a whopping 278 million dollars in the exchange previously managed by Sam Bankman Fried (now sentenced to 25 years in prison), failing to recover anything.
It is also worth noting how Huang was a key witness in the trial against SBF last year, even though he never mentioned the VC and his financial contribution in court.
Other investments by Paradigm
The new fund created by the venture company Paradigm represents only the tip of the iceberg of a much broader investment activity, where the speculative component is present in a massive way.
Last month, the VC led a $55 million Series A round for Succinct, a project that aims to simplify the integration of ” zero knowledge proofs ” with the various operating frameworks used by developers.
At the end of last year, Paradigm also led another round of investments, this time for 18 million dollars, for the web3 infrastructure startup Privy, achieving moderate success.
Overall, according to Crunchbase, the venture capital company has made a total of 107 investments since 2018, leading in 72 of them.
Among the most recent important participations, we find the names of the layer-2 Blast, the computing company Axiom, and the social media developed on the Base blockchain Friend.Tech.
In Paradigm’s portfolio, as reported by Dropstab, we find a myriad of cryptographic tokens in which the company has invested in the past: among these, the most capitalized ones are UNI, ATOM, MKR, OP, LDO, STRK, AXS, SNX, and MINA.
Outside of investments, Paradigm announced last September the launch of a public policy arm focused on shaping policies in the United States.
This entity, known as Policy Lab, was designed to provide research to “inform policy decisions,” as the company’s special consultant Rodrigo Seira said at the time.
