Coinbase Co-Founder’s New VC Firm Paradigm Raises $2.5 Billion for Crypto Investments


Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang have raised $2.5 billion (about Rs 18,598 crore) for a venture capital fund aimed at “next generation crypto companies and protocols” called Paradigm One, making it the largest has become big. Crypto VC Fund. Paradigm One was launched in 2018 with an initial investment of $400 million (approximately Rs 2,976 crore), and the amount eventually raised is more than double the initial investment target for the VC fund.

Paradigm’s fund size highlights the anticipation of a major boom in the crypto industry among investors. “This new fund and its size reflect crypto Being the most exciting frontier in technology. In the past decade, crypto has come a long way,” wrote Ehrsham and Huang. blog post on Monday. The fundraising of the three-year-old firm overtook VC firm Andreessen Horowitz’s $2.2 billion (about Rs 16,370 crore) fund in 2021 amid record-breaking venture capital-raising activity this year.

Paradigm invests in crypto startups large and small, which are valued at more than $100 million, which is less than the company’s $1 million (approximately Rs.7.4 crore). Website it is said. The fund will invest in startups with “just a glimpse of an idea” as well as later-stage companies, Ersham and Huang said.

Lists San Francisco-based investment firm decentralized finance (DeFi) Space and Web3 applications, which refer to apps built on it blockchain Platforms, as two sectors are the major ones for investment.

in one Interview With the Financial Times, Ehrsam (who co-founded Coinbase) stated that token-based apps, in particular, have room to grow and that “decades into the future, it is very clear that the world’s largest institutions by token will operate,” simply because the world’s largest Internet companies are currently powered by networks.

According to market data provider PitchBook, in the first three quarters of 2021, venture capitalists poured a record $21.4 billion (about Rs 1,59,172 crore) into cryptocurrency and blockchain-focused companies in 1,196 deals – a fivefold increase year-on-year. .


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