Venture capital firm Paradigm announced that it has raised $850 million for its third fund, which will focus on early-stage cryptocurrency projects. The company is an early investor in decentralized cryptocurrency exchange Uniswap and Ethereum scaling project Optimism.
Founded in 2018 by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang, Paradigm is now one of the largest investors in the cryptocurrency industry. "We love contributing to early-stage businesses and will focus more on this area going forward," Huang said. The San Francisco-based company is launching a fund for the first time since Ehrsam stepped down as a director.
Paradigm launched a $2.5 billion fund in 2021, which was the largest investment fund in the cryptocurrency market at the time. This year, there has been a proliferation of investment funds in the cryptocurrency sector, with existing funds raising new capital. One of the biggest drivers of this has been spot Bitcoin ETFs in the US.
