Enterprise capital firm Paradigm has reportedly raised $850 million for its third fund, supporting early-stage cryptocurrency initiatives led by Coinbase co-founder Fred Ehrsam and ex-Sequoia Capital partner Matt Huang.
Increased Enterprise Capital Interest In The Industry
Paradigm’s previous investments include outstanding projects like decentralized exchange (DEX) Uniswap and Optimism, a scaling solution for the Ethereum blockchain.
Based on Bloomberg, with the capital raised in the most recent funding round, Paradigm goals to contribute to early-stage crypto work and plans to prioritize such projects in the longer term.
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The most recent fundraising comes after Paradigm’s notable achievement in 2021 when it secured a $2.5 billion fund, the largest-ever crypto investment vehicle at the moment.
The present surge in interest and confidence inside the enterprise capital community towards the crypto industry has led to increased funds focused on cryptocurrency strategies.
Paradigm’s fundraising success reflects the growing market appetite for crypto investments. Recent developments, akin to the introduction of Bitcoin ETF and the approaching approval of ETFs centered around Ethereum, have fueled the industry’s expansion.
Hivemind Capital Joins Paradigm In Enterprise Funding Race
Paradigm is just not the one enterprise firm searching for to boost funds inside the crypto space. Hivemind Capital, as an illustration, is actively raising a specialized $50 million non-fungible token (NFT) fund.
Hack VC, which previously announced a $150 million fund, can be exploring opportunities to boost over $100 million for one more investment vehicle. These initiatives highlight the increasing interest and confidence within the potential of the crypto industry from enterprise capitalists.
While Paradigm faced criticism, including temporarily removing cryptocurrency references from its website, the firm rectified the situation and reaffirmed its commitment to the industry.
Fred Ehrsam transitioned from managing partner to general partner on the firm in October, further solidifying Paradigm’s dedication to fostering crypto innovation.
Despite setbacks, Paradigm continues to support crypto projects actively. Recently, the firm led an investment round in Merkle Manufactory, an organization accountable for developing software infrastructure for the Farcaster social media network.
The funding round valued Merkle Manufactory at roughly $1 billion, underscoring Paradigm’s ongoing belief within the potential and value of the crypto industry.
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Overall, Paradigm’s successful fundraising efforts for its third fund display investors’ continued interest and confidence in supporting early-stage cryptocurrency projects.
The each day chart shows the entire crypto market cap’s valuation. Source: TOTAL on TradingView.com
In recent months, the crypto industry has experienced a consistent outflow of funds, leading to a decline in the entire market capitalization from its yearly peak of $2.7 trillion to the present level of $2.3 trillion.
The dominant cryptocurrency available in the market has been the first driver of the recent price drops. It’s currently valued at $66,700 and has experienced a 3% decrease inside the past 24 hours. Similarly, Ethereum has also declined, with its price dropping by 4% to roughly $3,475.
Featured image from DALL-E, chart from TradingView.com