Key Takeaways
- • Paradigm is seeking to raise between $750 million and $850 million for a new crypto-focused venture fund, according to Bloomberg, citing people familiar with the matter.
- • If the raise closes at the low end of the range, it would be the largest crypto venture fund since the crypto winter slump, per Bloomberg.
- • Paradigm, co-founded by Coinbase co-founder Fred Ehrsam and former Sequoia partner Matt Huang, raised $2.5 billion for its prior fund in November 2021 at the height of the last bull market.
- • The fundraising effort coincides with a renewed crypto bull run that followed SEC approval of spot bitcoin ETFs for U.S. trading.
- • VC funding for crypto projects rose 52.5% month-over-month in March, according to RootData.
Summary
Crypto venture capital firm Paradigm is looking to raise between $750 million and $850 million for a new fund, Bloomberg reported on Tuesday, citing people familiar with the matter. Bloomberg said that if the fundraise is completed at the lower end of the range, it would still be the industry's largest since the recent crypto winter slump.
Paradigm was founded by Coinbase co-founder Fred Ehrsam and former Sequoia partner Matt Huang. The firm previously raised $2.5 billion for a fund in November 2021, during the peak of the prior crypto bull market. The new target size would represent a significant step back from that peak, though it would still mark a substantial return to large-scale crypto venture fundraising.
The report arrives as the crypto industry enters a new upswing that began after the SEC gave the green light for spot bitcoin exchange-traded funds to trade in the U.S. Deal activity in the sector has also picked up. According to RootData, VC funding for crypto projects surged 52.5% month-over-month in March, signaling improving conditions for early-stage crypto investment.
The reported target underscores renewed institutional appetite for crypto-focused venture vehicles. Details on the fund's final close, investor composition, and strategy were not disclosed in the Bloomberg report, which relied on sources familiar with the talks rather than an official announcement from Paradigm.
Paradigm was founded by Coinbase co-founder Fred Ehrsam and former Sequoia partner Matt Huang. The firm previously raised $2.5 billion for a fund in November 2021, during the peak of the prior crypto bull market. The new target size would represent a significant step back from that peak, though it would still mark a substantial return to large-scale crypto venture fundraising.
The report arrives as the crypto industry enters a new upswing that began after the SEC gave the green light for spot bitcoin exchange-traded funds to trade in the U.S. Deal activity in the sector has also picked up. According to RootData, VC funding for crypto projects surged 52.5% month-over-month in March, signaling improving conditions for early-stage crypto investment.
The reported target underscores renewed institutional appetite for crypto-focused venture vehicles. Details on the fund's final close, investor composition, and strategy were not disclosed in the Bloomberg report, which relied on sources familiar with the talks rather than an official announcement from Paradigm.
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