Paradigm Secures $850M for New Early-Stage Crypto Investments

Paradigm VC Funding
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Journalist
Journalist
Hassan Shittu
Author Categories
About Author

Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

Paradigm, a leading venture capital firm in the crypto space, has announced the close of its third venture fund, a substantial $850 million initiative to support early-stage crypto projects.Founded in 2018, Paradigm has maintained a strong belief in the transformative potential of crypto technology. “Six years later, that belief has only gotten stronger,” the company stated, highlighting the rapid advancements and widespread adoption of cryptocurrencies.

Paradigm Announces Historic Fundraise to Drive Crypto Innovation and Early-Stage Projects

Paradigm has been in talks about this new fund

over the past few months, particularly following the resurgence in crypto markets. According to an announcement made on June 13, the company has successfully closed an $850 million investment fund, marking it as one of the largest crypto fund raises to date.

Paradigm’s notable investments include Uniswap, which revolutionized decentralized exchanges through the use of Automated Market Makers (AMMs), Optimism, which developed a leading model for blockchain scaling, and Flashbots, which redefined block building through the concept of Miner Extractable Value (MEV).

However, the firm also experienced setbacks, such as the $278 million investment in the now-defunct crypto exchange FTX, which was written down to zero in November 2022.

Despite the setbacks, the company’s focus on pioneering early-stage work continues, with Paradigm emphasizing its commitment to investing in early-stage crypto projects. In addition to its investment activities, Paradigm is dedicated to building a positive future for the crypto industry.

“It’s more important than ever to accelerate a positive future for crypto, not just as investors but as builders.”

Crypto Investments See Uptick in Q1 2024

In 2021, Paradigm secured a $2.5 billion fund, which was then the largest crypto investment fund. Reports from The Information in September indicated that Paradigm was aiming for a $1 billion fund raise at that time.

According to data compiled by Galaxy Research, investors injected $2.49 billion across 603 deals in the first quarter of 2024. This marks a 29% increase in funding and a 68% rise in deals compared to the previous quarter.

This increase in investment activity suggests a potential recovery after several quarters of decline. The report notes, “This was the first rise in both capital invested and deal count in 3 quarters, perhaps signaling that Q4 2023 was the ‘bottom,’ although a continuation of QoQ increases — and a more meaningful increase — would confirm that over the coming quarters.”

The report added that the infrastructure sector dominated investment activity, securing 24% of the total capital raised during the quarter, highlighted by EigenLayer’s impressive $100-million funding round. The Web3 and trading sectors were also significant contributors, capturing 21% and 17% of the total capital, respectively.

More Articles

Altcoin News
Cardano Price Analysis: Is February Going to be a “Crazy Month” of ADA Gains?
Joel Frank
Joel Frank
2025-02-06 19:07:19
Blockchain News
US Crypto Regulations vs. MiCA Rules: Are Global Standards Underway?
Rachel Wolfson
Rachel Wolfson
2025-02-06 18:37:42
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors