San Francisco-based Company Raises $850 Million for Cryptocurrencies

Paradigm will invest hundreds of millions of dollars in early-stage cryptocurrency projects.

Venture capital firm Paradigm announced that it has raised $850 million for its third fund, which will focus on early-stage cryptocurrency projects.

Prefers early stage projects

Paradigm was an early investor in Optimism, a project to scale Ethereum with decentralized cryptocurrency exchange Uniswap.

The company was founded in 2018 by Fred Ehrsam, one of the founders of Coinbase, the largest cryptocurrency exchange in the USA, and Matt Huang, a former partner of Sequoia Capital. Paradigm is among the largest investors in the cryptocurrency industry today.

“We like to contribute to this kind of early-stage business and will focus on this more and more in the future,” Huang said.

The San Francisco-based company is establishing a fund for the first time since Ehrsam left the management position.

He raised billions of dollars

Paradigm established a fund worth $2.5 billion in 2021. This was the largest investment fund ever seen in the cryptocurrency market at the time.

Investment funds for the cryptocurrency sector began to proliferate this year. Funds already operating in the sector are raising new capital. One of the biggest factors for this was spot Bitcoin ETFs in the US.