Crypto Venture Firm Paradigm invest $2.5 Billion Venture Fund
A $2.5 billion venture fund has been announced by Paradigm for investing in cryptocurrency companies and protocols.
The firm will now study blockchain technologies in-depth to see which companies are leading the crypto space. In addition, the fund is huge, which demonstrates the firm's commitment to this new venture.
The two co-founders of Paradigm, the ex-Sequoia Capital Partner Matt Huang and Coinbase Founder Fred Ehrsam, said, "Our conviction in these beliefs has only strengthened over the past three years, and we are pleased to announce a new $2.5 billion venture fund to continue investing in the next generation of crypto companies and protocols."
During the first half of 2021, Paradigm made an annual internal rate of return of more than 200 percent on $400 million raised in 2018, with assets reaching as high as $10 billion. Paradigm's structure is similar to that of a hedge fund, which frees it from the requirement of delivering capital by a specified date, typically expected of VC funds.
According to a report, Andreessen Horowitz also raised the largest crypto-related venture capital fund ever earlier this year when it raised $2.2 billion. Both Andreessen Horowitz and Paradigm took in more than they expected, and both are seeking to profit from ethereum, a blockchain-based software platform for creating and using smart contracts and distributed apps.
According to the survey, startup founders find Paradigm to be a desirable investor because of its research team that works with portfolio firms.
The investment firm Paradigm was never anti-crypto, and its belief in the technology has only grown over time. No one expected this company to invest $2.5 billion in this innovative technology at the time. But now we're in 2021, and things have changed dramatically. The firm has done really well despite its young age.
CBW - External Analyst