Paradigm Raises $850 Million for Early-Stage Crypto Venture Fund

(Bloomberg) — Venture capital firm Paradigm said it has raised $850 million for its third fund that will focus on early-stage crypto projects.

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Paradigm was previously an early investor and contributor to projects like crypto exchange Uniswap and Optimism, a way to scale the Ethereum blockchain. Coinbase Global Inc. Founded in 2018 by co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang, Paradigm is one of the largest VC investors in the industry. This is Paradigm’s first fund since Ehrsam left his leadership role at the San Francisco-based firm in October.

“This is the kind of early-stage work we like to contribute to, and we’ll be increasingly focused on it moving forward,” Huang wrote in a blog post Thursday.

Paradigm previously raised a $2.5 billion fund in 2021, the largest crypto investment vehicle at the time.

New funds focused on cryptocurrency strategies began setting up shop at a faster pace earlier this year, and many existing funds began fundraising as Bitcoin hit a record. Driving the rise has been the launch of exchange-traded funds that invest directly in Bitcoin and more recent signs that approval of similar funds focused on Ether is imminent.

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