Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang have raised $2.5 billion (about Rs 18,598 crore) for a venture capital fund aimed at “next generation crypto companies and protocols” called Paradigm One, making it the largest has become big. Crypto VC Fund. Paradigm One was launched in 2018 with an initial $400 million (approximately Rs 2,976 crore), and the final amount raised is double the initial investment target for VC Fund.
Paradigm’s fund size highlights the anticipation of a major boom in the crypto industry among investors. “This new fund and its size represent crypto as one of the most exciting frontiers in technology. Over the past decade, crypto has come a long way,” Ehrsham and Huang wrote in a blog post on Monday. The fundraising of the three-year-old firm overtook VC firm Andreessen Horowitz’s $2.2 billion (about Rs 16,370 crore) fund in 2021 amid record-breaking venture capital-raising activity this year.
The company’s website says that Paradigm invests in crypto startups large and small, which are valued at over $100 million, which is around $1 million (approximately Rs.7.4 crore). The fund will invest in startups with “just a glimpse of an idea” as well as later-stage companies, Ersham and Huang said.
The San Francisco-based investment firm lists decentralized finance (DeFi) space and Web3 applications, which refer to apps built on blockchain platforms, as the primary two areas for investment.
In an interview with the Financial Times, Ehrsam (who co-founded Coinbase) said that token-based apps, in particular, have room to grow and that “decades into the future, it is very clear that the world’s largest Entities will be powered by tokens,” like the world’s largest internet companies currently powered by the network.
According to market data provider Pitchbook, in the first three quarters of 2021, venture capitalists poured a record $21.4 billion (about Rs 1,59,172 crore) into cryptocurrency and blockchain-focused companies in 1,196 deals — a five-fold increase year over year. on the year.