The company intends to invest the capital raised in crypto initiatives and protocols
On Monday, Paradigm, a crypto investment firm led by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang, announced that it had raised $ 2.5 billion for its crypto fund. The fund received well over the $ 1.5 billion it forecast when it began raising funds last month.
Cryptocurrencies are owned by less than 10%
In the announcement, Huang and Ehrsam wrote that, despite growing crypto markets and their acceptance, they do not yet have to reach their full potential. Their claim is backed up by the fact that crypto only belongs to a small percentage of the world’s population.
The co-founders added that the fund and its sheer size are indicative of the potential of crypto as a technology. They further stated that Paradigm planned to invest the capital alongside its existing flagship fund.
“This new fund and its size reflect that crypto is the most exciting frontier in technology. In the past decade, crypto has come a long way. But cryptocurrencies are still owned by less than ten percent of the world’s population. ” They write.
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“We will continue to develop ideas. We’ll keep investing in the earliest stages when there’s even a glimmer of an idea. We will also work with category leaders in later phases and support companies in every phase in between. “
Paradigm isn’t just stepping into the crypto hype – it’s been around three years and has a fairly diversified investment portfolio. The VC fund has investments in around 40 crypto companies, including Coinbase, Uniswap, Cosmos, FTX, dYdX, Matrixport and Chainalysis.
Andreessen Horowitz, a16z, recently (in June) launched his third crypto venture fund with a total of 2.2 billion US dollars. At the time, this was the largest crypto fund of all time that the company should direct towards blockchain initiatives and digital asset projects. Fund managing partners Chris Dixon and Katie Haun had expressed views similar to Paradigm’s and stated that they see crypto as the leading next computer innovation.
The Silicon Valley company intended to use the $ 2.2 billion fund to expand its team to advance crypto research and data science while providing unmatched regulatory and operational capabilities.