Paradigm is a crypto VC firm founded in 2018 by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang. The firm has announced the largest crypto fund ever with a $2.5 billion venture fund surpassing A16z’s $2.2 billion crypto-centric fund.
Paradigm’s most high-profile investments include FTX, Coinbase, BlockFi, Maker, Uniswap and Sky Mavis. Investors like Harvard and Princeton universities have also invested in the $2.5B Paradigm fund.
Paradigm differs from other funds as the founder says it is spending heavily on fundamental research and legal and regulatory issues that help its portfolio companies.
“Over the past year, there’s been a tremendous broadening in what crypto startups can mean,” says Huang, citing in part the emergence of the NFT economy. “The infrastructure has advanced over the last few years. Now we’re ready for broader applications. This new fund will invest alongside our existing flagship fund across all stages and geographies,” Paradigm’s founding team said in Monday’s blog post.
The ability to launch tokens has led many startups to fund themselves outside the VC ecosystem. VC firms are setting up separate crypto verticals or crypto dedicated funds to offer much more than capital to their portfolio companies.