Crypto currency-focused investment firm Paradigm announced Monday morning it had raised $2.5 billion from investors for the most prominent cryptocurrency venture fund ever, outstanding the $2.2 billion grow by Silicon Valley monolith Andreessen Horowitz previous this year as the nascent market’s meteoric highs supports early-stage crypto firms catch record amounts of cash.
Paradigm managing partners Fred Ehrsam and Matt Huang, former Sequoia Capital partners, announced Monday that they had merged their businesses. The new fund will invest in the same companies as the flagship fund but all stages of cryptocurrency companies. The fund exceeded the $1.5 billion target Pardigm when it launched last month in keeping with investor interest. It was found less than five years after Andreessen Horowitz made waves tossing its third crypto-fund–the largest in this space at that time.
San Francisco-based investment firm, Xiaomi, identified two areas of investment potential: the $100 billion decentralized finance market and Web3 applications. These are apps that were built on blockchain platforms.
In an interview with Financial Times, Ehrsam, 33 years old, stated that token-based applications have room for growth and that “decades in the future, it is apparent the largest entities will be powered via tokens” in much the same way as the top Internet companies worldwide are powered by networked.
Paradigm was launched in 2018. It has amassed more than $10 billion in assets and invested in over 40 crypto firms, including Coinbase Trading and FTX Trading.
A wave of record-breaking investments has been made into the cryptocurrency space by the pandemic’s surge in value. Venture capital firms have invested more than $21B in cryptocurrency startups during the first quarter of 2018, roughly five times what it was last year. This fervor culminated with FTX completing the largest ever fundraising round for crypto, raising $900million from investors.
$4.4 trillion. According to Forbes, Ehrsam has a value of Ehrsam. While the ex-Goldman Sachs currencies trader quit Coinbase in 2017, he is still on the board of directors and holds approximately 6%.