Paradigm, a prominent figure in the crypto venture capital scene, is setting its sights on a substantial fundraising target for its latest investment fund.
According to sources familiar with the matter cited in a recent Bloomberg report, Paradigm is aiming to raise between $750 million to $850 million for its latest fund. If finalized at $750 million, this fund would mark the industry’s most significant fundraising effort since 2022, following Andreessen Horowitz’s $4.5 billion crypto fund established in May.
Co-founded by Fred Ehrsam, a co-founder of Coinbase, and Matt Huang, formerly of Sequoia Capital, Paradigm is recognized as a “research-driven technology investment firm,” with investments in projects like Uniswap, FTX, Cosmos, and Axie Infinity, among others.
In 2021, Paradigm successfully raised a $2.5 billion fund, which at the time was the largest crypto investment fund. Reports from The Information in September hinted that Paradigm was aiming for a $1 billion fund raise.
However, Paradigm has faced challenges, particularly in its involvement with FTX. In October 2023, Matt Huang provided testimony during the trial of FTX co-founder Sam Bankman-Fried, who was recently sentenced to a 25-year prison term. Paradigm had previously allocated $278 million to FTX and ultimately wrote off its investment entirely after the exchange’s bankruptcy.
Paradigm finds itself entangled in a class-action lawsuit initiated by FTX investors, accusing Paradigm, along with Sequoia and Thoma Bravo, of inadvertently endorsing FTX’s legitimacy through their financial backing.
Furthermore, Paradigm has shown support for Coinbase in its legal battle against the Securities and Exchange Commission (SEC). In an amicus curiae brief filed in support of Coinbase, Paradigm criticized the SEC’s regulatory approach as overly punitive and resistant to engaging in rulemaking. This conflict arose in July 2022 when Coinbase sought guidance on digital asset regulations, leading to the ongoing lawsuit against the SEC.
As Paradigm continues its fundraising efforts and navigates legal challenges, its actions will likely have significant implications for the crypto investment landscape and regulatory environment.
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