Paradigm Seeks $750M-$850M For New Crypto Fund

Crypto-focused venture capital firm Paradigm is reportedly aiming to secure between $750 million to $850 million in new funding, marking one of the most substantial fundings seen in the cryptocurrency sector since the onset of the bear market in mid-2022.

Sources cited by Bloomberg attribute Paradigm's decision to capitalize on the recent resurgence in the crypto market, signaling growing investor confidence and opportunity within the industry. If successful, the new fund would mark a significant milestone since the industry crash.

This initiative follows Paradigm's previous fundraising success in 2021, where it secured a record-breaking $2.5 billion.

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Paradigm's Track Record and Leadership

Founded by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang, Paradigm describes itself as a research-driven technology investment firm.

With a focus on supporting innovative projects in the crypto space, Paradigm has emerged as a leading venture capital firm alongside industry giants like Andreessen Horowitz, Digital Currency Group, and Pantera Capital.

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Past Controversies

Despite its prominence, Paradigm has faced criticism for its perceived lack of commitment to the crypto industry. Past developments, including Huang's involvement in the trial of FTX co-founder Sam Bankman-Fried, have raised questions about the firm's direction. 

Paradigm has since marked down its stake in FTX to zero, despite having invested some $278 million in the now-defunct exchange. Due to this, the firm was included in a class-action lawsuit filed by FTX investors who claim that the firm's investments (along with Sequoia Capital and Thoma Bravo) provided an unnecessary "air of legitimacy" for FTX.