Crypto venture capital firm Paradigm unveils $2.5 billion fund

Investment firm Paradigm has announced the creation of a new “New Venture Fund” worth $2.5 billion, which will be used to expand its investment into bitcoin business and protocols.

“The fund and its scale are symbolic of cryptocurrency being the most exciting future in technology,” Paradigm co-founders Fred Ahrsam and Matt Huang, said on Monday.

A new record

According to the Financial Times, the fundraising pool has surpassed Andreesen Horowitz’s (a16z) $2.2 billion raise in June of this year to become the highest among venture capital crypto funds.

However, it was not specified which areas of the bitcoin business will receive funding from the New Venture Fund in the statement.

Paradigm has previously invested in crypto initiatives that make use of Web 3.0 to launch their apps, with approximately 11 of the 40 firms and projects in its portfolio utilizing DeFi protocols, the company’s website showed. 

Paradigm has also made investments in cryptocurrency-native exchanges, borrowing and lending platforms, among other things. Coinbase, FTX, Uniswap, and Sky Mavis are just some of the well-known names in the company’s portfolio.

It won’t stop growing

Despite the fact that Paradigm’s new fund claims to be the world’s largest cryptocurrency fund, Ehrsam and Huang said on Twitter that they are “just getting started.”

In the release, Ehrsam and Huang claimed that their mission to be “the first and most helpful partner to crypto businesses and communities” has not altered and that they will continue to do so.

Recent investments by Paradigm include the lending protocol Jet Protocol, which is based in Solana, and the combat game AI Arena, which is based on non-fungible tokens (NFTs). 

The company has recently boosted its exposure to NFT platforms, making investments in Royal and Fractional in the month of August, among other platforms.

 

Image courtesy of Cointelegraph News/YouTube

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