Paradigm seeks to raise $850 million in cryptocurrency fund, crypto financing amount grew by more than 50% in March

Bloomberg reports that crypto venture capital Paradigm is seeking to raise a new crypto fund of up to $850 million. If its current fundraising is successfully completed, it will become the largest cryptocurrency fund since May 2022. At the same time, as the price of Bitcoin hit a new high in March, the amount of crypto financing also increased by 52% that month.

[TREE DAO] Crypto VC Paradigm in Talks to Raise Over $750 Million for Fund, Largest Crypto fund Since 2022

— Tree News (@News_Of_Alpha) April 2, 2024

Paradigm wants to raise 850 million magnesium, Bloomberg: largest in two years

As the crypto market has recovered since 2023, venture capital institutions are also gearing up, eager to invest in the golden goose hen.

Paradigm, a well-known crypto venture capital firm, was also reported to be discussing with investors at this time to raise a crypto fund of up to US$850 million.

Previously, Paradigm last established a venture fund in November 2021, with an amount of US$250 million.

Bloomberg quoted people familiar with the matter as saying that this will be the largest fundraising in the past two years:

If Paradigm completes this financing, it will be the largest cryptocurrency fund since May 2022.

It is reported that another venture capital giant a16z (Andreessen Horowitz) raised a staggering US$4.5 billion at the time.

Review of Paradigm investment projects

Previously, Paradigm's well-known investments in the encryption field include Coinbase, Blast , Optimism, Uniswap and friend.tech .

However, the company has also experienced investment failures, raising US$278 million for the defunct FTX exchange from 2021 to 2022. Co-founder Matthew Huang also admitted this:

There was insufficient due diligence and was attracted by FTX's rapidly expanding market share. At the same time, it also relied too much on information unilaterally provided by SBF.

( Admitting due diligence failure and trusting SBF too much, venture capital Paradigm: SBF is very resistant to others joining the board of directors )

It is understood that Paradigm led the Series A financing of ZK’s new startup team Succinct Labs this month, raising US$55 million for it.

Uma and John have built something special… excited for Paradigm to have led the seed and be doubling down on the series A. https://t.co/Z3ndge5Bcz

— Matt Huang (@matthuang) March 21, 2024

Crypto financing amount increased by 52% in March

Rootdata data shows that as the price of Bitcoin hit a new high in March, the amount of crypto financing also increased for three consecutive months, with a 52% growth in March, and the total financing that month reached $1.16 billion.

It is reported that this is the second-highest amount since 2023, second only to the US$1.29 billion in November last year.

Among them, in terms of fields, most of the funds were invested in on-chain infrastructure and DeFi projects, with the least in NFT projects; in terms of blockchain, most of the funds were invested in Ethereum, followed by Polygon and BNB Chain; and In terms of regions, about one-third of the funds are concentrated in the United States.

In addition, more than 50% of the investment amounts fall between US$1 million and US$5 million, and only about 10% invest more than US$20 million.