Paradigm Raises 850 Million for Fresh EarlyStage Crypto Investments

Paradigm Secures $850M for New Early-Stage Crypto Investments


By Hassan Shittu
Published on:
June 14, 2024 00:35 EDT
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2 min read


A prominent venture capital firm in the crypto space, Paradigm, has recently closed its third venture fund, raising a substantial $850 million to support emerging crypto projects.
Since its establishment in 2018, Paradigm has been a firm believer in the transformative power of crypto technology. Over the years, this belief has only strengthened, as evidenced by the rapid progress and widespread acceptance of cryptocurrencies.
Paradigm Makes Historic Fundraise to Propel Crypto Innovation and Early-Stage Ventures
In recent months, Paradigm has been in discussions about this new fund, especially with the resurgence in crypto markets. On June 13, the company successfully concluded an $850 million investment fund, marking it as one of the largest crypto fund raises to date.
Some of Paradigm’s noteworthy investments include Uniswap, which revolutionized decentralized exchanges with Automated Market Makers (AMMs), Optimism, a pioneer in blockchain scaling solutions, and Flashbots, which introduced the concept of Miner Extractable Value (MEV) in block building.
Despite facing setbacks, such as the write-down of a $278 million investment in the now-defunct FTX crypto exchange to zero in November 2022, Paradigm remains focused on supporting innovative early-stage projects. The company reaffirms its dedication to fostering a promising future for the crypto industry.
Increase in Crypto Investments in Q1 2024
In 2021, Paradigm secured a $2.5 billion fund, which was then the largest crypto investment fund. Reports from The Information in September suggested that Paradigm was aiming for a $1 billion fund raise at that time.
According to data from Galaxy Research, investors poured $2.49 billion into 603 deals in the first quarter of 2024. This represents a 29% increase in funding and a 68% rise in deals compared to the previous quarter.
The surge in investment activity indicates a potential recovery after several quarters of decline. The report speculates, “This was the first increase in both capital invested and deal count in 3 quarters, potentially signaling that Q4 2023 was the ‘bottom,’ although sustained increases over the coming quarters would confirm this.”
The infrastructure sector led investment activity, accounting for 24% of the total capital raised in the quarter, with EigenLayer’s impressive $100 million funding round standing out. The Web3 and trading sectors also made significant contributions, capturing 21% and 17% of the total capital, respectively.
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