Crypto VC Paradigm seeking up to $850M raise for fund: Report

Crypto venture capital firm Paradigm is reportedly negotiating a raise of up to $850 million for a new fund.

Paradigm is discussing with investors to raise between $750 million to $850 million as crypto markets have come back over the past months, Bloomberg reported on April 3, citing people familiar with the matter.

A $750 million raise would be the largest for crypto since May 2022, when Silicon Valley-based VC firm Andreessen Horowitz (a16z) raised a record-setting $4.5 billion.

If Paradigm completes the raise, it would be its largest since it raised a $2.5 billion fund in November 2021 at the peak of the last cycle’s bull run — which was the largest cryptocurrency fund ever at the time.

In September, The Information reported Paradigm was aiming to raise a $1 billion fund.

Paradigm did not immediately respond to a request for comment.

Some of Paradigm’s most notable Web3-related investments include Coinbase, Fireblocks, Blast, Optimism, Uniswap, Gitcoin and friend.tech.

Paradigm recently tipped Merkle Manufactory — the firm behind the decentralized social network Farcaster — into unicorn status as its valuation surpassed the $1 billion mark in a Paradigm-led funding round.

Paradigm also invested $278 million in the now-collapsed FTX. It wrote its investment down to zero just four days after Sam Bankman-Fried’s exchange filed for bankruptcy.

Paradigm founder and managing partner Matt Huang said the firm felt “deep regret” for investing in a company that did “enormous damage to the ecosystem.”

Matt Huang, co-founder and managing partner at Paradigm. Source: Paradigm

Huang said FTX only constituted “a small part” of Paradigm’s total assets, however.

Related: Crypto VC funding surged 53% in March, Optimism wins largest share

VC fundraising for crypto projects sunk ta low of $445 million in October 2023 — the lowest monthly figure since December 2020, according to RootData.

However, the last three months have recorded consecutive monthly increases, with March seeing $1.16 billion, according to…

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