The San Francisco based investment company Paradigm, owned by Coinbase co- founder Fred Ehrsam and former Sequoia Capital partner Matt Huang, raised some 2,5 bln USD for a new crypto venture- capital fund – the Paradigm One.
The fund is so far the largest of its kind, surpassing that of Andreessen Horowitz, which earlier this year raised 2,2 bln. USD and highlights the increased interest in the crypto industry among investors worldwide.
In a statement Paradigm says that the new venture- capital fund aims at the “next generation of crypto companies and protocols.”
“This new fund and its size are reflective of crypto being the most exciting frontier in technology. Over the past decade, crypto has come a long way”, Fred Ehrsam and Matt Huang said in a blog post after the fund was launched on Monday.
Paradigm intends to continue to invest in startups with “just a glimmer of an idea” as well as later- stage companies, Ersham and Huang also said.
The value of Uniswap, a token exchange backed by Paradigm, as well as other decentralised finance (DeFi) entities has risen in the past year as more and more investors turn their eyes on the growing crypto market.
Both Paradigm One and the crypto venture- capital fund of Andreessen Horowitz are largely focused on new applications based on ethereum, the digital ledger which allows for the creation of new token based programs facilitating the automatic transfer of funds.
Fred Ehrsam and Matt Huang also said in their blog post that the realm of token- based apps, which programmers refer to as Web3, is still in its infancy and has a lot of potential for growth.
In another development, also highlighting the increased interest in the crypto market, last week the global bitcoin assets under management reached a new record high of 56 bln. USD.
