Paradigm aims to raise new funding for crypto investments as venture capitalists flock once again to the burgeoning digital asset industry.
Cryptocurrency investment firm Paradigm raises up to $850 million for new fund as Bitcoin rebounds above all-time highs and cryptocurrencies rally near 2021 peaks Bloomberg reported on April 2 that plans are being made.
According to RootData, investment in crypto protocols and ideas surged more than 50% last month as capitalists injected around $1.1 billion into the digital asset sector. Defi solutions running on Ethereum, Polygon, and other decentralized finance-centric blockchains attracted the most funding.
Paradigm aims to raise at least $750 million in what could be the company's biggest revenue since 2021. At the time, the company raised $2.5 billion for a cryptocurrency fund, the largest fund of its kind in history until Andreessen Horowitz (a16z) raised $4.5 billion. A crypto investment vehicle will be launched in May 2022.
Other VCs such as a16z, Hack VC, and Hivemind are participating in fundraising activities ranging from $50 million to $150 million as crypto acquisitions gain momentum again.
Paradigm’s bitter bet on FTX
Paradigm, spearheaded by Coinbase co-founder Fred Ehrsam and former Sequoia Capital executive Matt Huang, was also an investor in bankrupt cryptocurrency exchange FTX. Mr. Huang was part of the team that invested $278 million in Sam Bankman Freed's business.
Last November, a former Sequoia partner told a jury that Bankman Freed misled Paradigm about the operation of FTX. Huang's testimony during the three-week trial contributed to the conviction of the FTX founder.
After Huang's company went bankrupt and reduced its FTX stake to zero, Bankman Freed was sentenced to 25 years in prison for defrauding investors and customers of more than $8 billion.
