Paradigm aims to raise $850 million for cryptocurrency fund; March crypto fundraising surges over 50%.
Paradigm, a cryptocurrency venture capital firm, is reportedly seeking to raise a new cryptocurrency fund of up to $850 million. If successful, this would be the largest cryptocurrency fund since May 2022. Additionally, with the price of Bitcoin reaching new highs in March, cryptocurrency financing also grew by 52% that month.
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Paradigm seeks to raise $850 million, according to Bloomberg: the largest scale in two years.
Review of Paradigm investment projects.
Cryptocurrency financing grew by 52% in March.
With the recovery of the cryptocurrency market since 2023, venture capital firms are also eager to find the next big opportunity.
Well-known cryptocurrency venture capital firm Paradigm is reportedly in discussions with investors to raise up to $850 million for a cryptocurrency fund.
Previously, Paradigm’s last venture fund was established in November 2021, with a total of $250 million.
According to anonymous sources quoted by Bloomberg, this would be the largest fundraise in nearly two years. If Paradigm completes this financing, it would be the largest cryptocurrency fund since May 2022. It is worth noting that another venture capital giant, Andreessen Horowitz (a16z), raised an astonishing $4.5 billion at that time.
Paradigm’s previous notable investments in the cryptocurrency field include Coinbase, Blast, Optimism, Uniswap, and friend.tech.
However, the company has also experienced investment failures. It raised $278 million for the now-closed FTX exchange from 2021 to 2022, and co-founder Matthew Huang admitted to insufficient due diligence and excessive reliance on information provided solely by SBF, the founder of FTX.
(
Admitting to due diligence failures and excessive trust in SBF, Paradigm: SBF is resistant to others joining the board of directors
)
It is understood that Paradigm led the Series A financing of ZK startup Succinct Labs this month, raising $55 million for the company.
According to Rootdata, with the price of Bitcoin reaching new highs in March, cryptocurrency financing has seen three consecutive months of growth, with a 52% increase in March, reaching a total financing amount of $1.16 billion that month.
Reportedly, this is the second-highest amount since 2023, second only to the $1.29 billion raised in November last year.
In terms of sectors, most of the funds were injected into on-chain infrastructure and DeFi projects, while NFT projects received the least amount of funding. In terms of blockchains, funds were mostly invested in Ethereum, followed by Polygon and BNB Chain. In terms of regions, about one-third of the funds were concentrated in the United States.
Furthermore, over 50% of the investment amount fell between $1 million and $5 million, with only about 10% of investments exceeding $20 million.
a16z
FTX
Matthew Huang
Paradigm
Rootdata
Cryptocurrency venture capital
Financing
Further reading:
One year after the FTX disaster, where did the employees go? + Creepy stories feat. Natalie
FTX founder SBF interviewed after the review: never thought he would break the law, plagued by lost things every day.
