As the crypto market continues to soar to new heights, investors are seeing an increasing appetite for LPs for risk in the space, making new venture funds huge – even by 2021 standards.
IdealA crypto VC firm founded in 2018 by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang has closed its latest fund and it is a doozy. The firm announced a $2.5 billion venture fund, the largest crypto fund ever, overtaking the $2.2 billion crypto-focused fund that Andreessen Horowitz announced this summer.
“This new fund and its size represent crypto as the most exciting frontier in technology,” the firm’s co-founders wrote in a statement. blog post Announcement of the launch of the fund.
Paradigm has been at the forefront of a class of so-called “crypto-native” VC firms that aim to weed out investment organizations that have stakes in the broader technology industry. Some of Paradigm’s most high-profile investments include FTX, Coinbase, BlockFi, Maker, Uniswap and Sky Mavis.
Paradigm now has an unmatched battle-chest to control an industry that is hotter and more diverse than ever. The young firm has a great opportunity to establish itself deep in the fibers of the crypto web, launching its new fund at a time where traditional VC firms have been forced to use their existing investment processes and even their Being forced to reckon with the efficacy of the underlying structures.
Paradigm has about 30 employees according to their website. Earlier this month, they brought in Nathan Apsell, who previously held the same title at Joe Lonsdale’s 8VC, as CFO.
Many major venture companies have been slow to adopt crypto, but Paradigm’s main VC competitor may be Andreessen Horowitz who is on his third crypto-focused fund and has done dozens of deals this year, mined new crypto unicorns and then doubled down. Gaya. Many of those same investments later. After hiring dramatically in recent months, the crypto branch has over 50 team members.