Paradigm, a venture capital firm focused on crypto, is reportedly in talks to raise a staggering $750 million to $850 million from investors, according to Bloomberg. This would be their biggest haul yet, surpassing the $2.5 billion raised in 2021.
If successful, Paradigm’s fund would become the largest for a crypto-focused VC since the late 2022 market crash. Back in May 2022, Andreessen Horowitz set the record with a $4.5 billion raise during the crypto market peak.
The crypto market downturn took its toll on investment. Venture capital funding for the sector plunged from $33.3 billion in 2022 to just $10.7 billion in 2023, a 68% drop. Even established players like Sequoia Capital downsized their crypto funds, with a 66% reduction.
However, a recent crypto market rebound has reignited VC interest. Hack VC, for instance, closed a $150 million round in February for Web3 and financial infrastructure investments and is planning a further $100 million raise. Similarly, Hivemind Capital is seeking $50 million for an NFT-focused fund.
Paradigm has a history of backing prominent Web3 projects, including Coinbase, Uniswap, Gitcoin, and Optimism. Notably, it was also an investor in FTX but was forced to write off its entire $278 million stake following the FTX bankruptcy.
On a brighter note, Paradigm’s recent investment propelled Merkle Manufactory, the company behind the social network Farcaster, to a valuation exceeding $1 billion.
