Paradigm Debuts Massive $2.5 Billion Crypto VC Fund

Venture capital firm Paradigm recently announced the debut of a massive new crypto fund, reflecting growing LP interest in blockchain and cryptocurrency investment opportunities.

Paradigm was founded in 2018 by former Sequoia Capital partner Matt Huang and Coinbase co-founder Fred Ehrsam. The VC firm has quickly grown to rival Andreessen Horowitz, another major VC player in the crypto space.

Paradigm’s new fund will have a enormous bankroll of $2.5 billion, and will invest alongside the firm’s existing flagship fund. Some of Paradigm’s past investments include FTX, Coinbase, and BlockFi.

The fund’s size is a reflection of crypto’s weight in the 2021 VC landscape. Paradigm explained the fund’s investment thesis in a company blog post:

This new fund and its size are reflective of crypto being the most exciting frontier in technology. Over the past decade, crypto has come a long way. But cryptocurrencies are still owned by less than ten percent of the global population. Decentralized financial systems have grown to hold over $100 billion in cumulative assets, yet still represent a small drop in the context of the traditional financial system. Web3 applications have grown to reach tens of millions of users, yet are still a far cry from the billions of Web2 users. The journey is just beginning, and the potential of crypto has never been more clear.

The $2.5 billion bankroll is a new record for a crypto VC fund, but with the current investor interest in the space, the record may not stand for long.