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Paradigm seeks to raise $850 million for a cryptocurrency fund, crypto fundraising in March grows by over 50%

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Paradigm seeks to raise $850 million for a cryptocurrency fund, crypto fundraising in March grows by over 50%

Bloomberg reported that crypto venture capital firm Paradigm is seeking to raise a new cryptocurrency fund of up to $850 million. If successful, this fundraising would become the largest cryptocurrency fund since May 2022. Additionally, with Bitcoin hitting a new high in March, cryptocurrency funding increased by 52% in that month.

Paradigm Seeks to Raise $850 Million, Bloomberg Says: Largest in Two Years

With the cryptocurrency market on the rebound since 2023, venture capital firms are eager to find the next big investment opportunity.

Well-known crypto venture firm Paradigm is reportedly in discussions with investors to raise up to $850 million for a new crypto fund.

Prior to this, Paradigm's last venture fund was established in November 2021, amounting to $250 million.

Bloomberg, citing sources familiar with the matter, stated that this would be the largest fundraising in nearly two years:

If Paradigm completes this funding round, it would be the largest cryptocurrency fund since May 2022.

It is reported that another venture capital giant, a16z Andreessen Horowitz, had raised an astonishing $4.5 billion during that time.

Review of Paradigm's Investment Projects

Previously, Paradigm's well-known investments in the crypto space include Coinbase, Blast, Optimism, Uniswap, and friend.tech, among others.

However, the company has also faced investment failures, having raised $278 million for the now-defunct FTX exchange between 2021 and 2022, with co-founder Matthew Huang admitting:

Insufficient due diligence, being attracted by FTX's rapid market share expansion, and over-reliance on information provided unilaterally by SBF.

Admitting failure in due diligence and excessive trust in SBF, venture firm Paradigm: SBF is resistant to others joining the board

It is understood that Paradigm led the Series A funding for ZK startup team Succinct Labs earlier this month, raising $55 million for them.

Cryptocurrency Financing in March Grows by 52%

Rootdata data shows that with Bitcoin reaching new highs in March, cryptocurrency financing has seen growth for three consecutive months, with a 52% increase in March, totaling a high of $1.16 billion in financing for the month.

Reportedly, this is the second-highest amount since 2023, only behind the $1.29 billion in November last year.

In terms of sectors, most of the funds were injected into on-chain infrastructure and DeFi projects, with the least going to NFT projects; in terms of blockchains, funds were mostly invested in Ethereum, followed by Polygon and BNB Chain; and in terms of regions, about one-third of the funds were concentrated in the United States.

Moreover, over 50% of investment amounts fell between $1 million and $5 million, with only about 10% of investments exceeding $20 million.