- Paradigm, a crypto-focused VC firm, is reportedly raising a new $1.5 billion fund.
- The fund could be one of the largest crypto-focused funds to date.
- A crypto-focused investor at 7percent Ventures thinks there’s going to be even more opportunities to invest in the space.
Venture capital firm Paradigm could be the latest to double down on crypto investing, as it’s looking to raise a new fund between $1.25 billion and $1.5 billion, according to CoinDesk.
It’s another sign that more investors see value in funding crypto startups.
“A lot of capital is going into crypto because people are seeing quite a lot of opportunity right now,” said Ivailo Jordanov, a crypto-focused investor and partner at 7percent Ventures. “They’re not basically raising capital to buy cryptocurrencies or anything, but the capital is used to back projects that are building in the space.”
Some of those projects gaining traction are around decentralized finance. And Jordanov says the sheer volume of development in the space is the reason why it’s attracting so much capital right now.
Jordanov also believes there’s going to be more opportunities for funding emerging crypto gaming startups.
Paradigm, the crypto-focused VC firm led by Coinbase cofounder Fred Ehrsam, could potentially have one of the more sizable crypto funds, alongside Andreessen Horowitz’s $2.2 billion fund, the industry’s largest thus far.
Paradigm did not respond to a request for comment.
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Paradigm’s tentative fund could add to the billions of capital already flowing to crypto startups. In the first half of 2021, crypto VC investment was over $17 billion, compared to a total of $5.5 billion in 2020, according to PitchBook.
Looking ahead, Jordanov also thinks that startups overall will look to adopt more crypto-related technologies.
“That’s really the main takeaway is that there’s smart capital that’s coming into the space now that is looking to capitalize on this opportunity,” Jordanov said.
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