Venture capital company Paradigm, which focuses on cryptocurrency, has launched a new $850 million fund.
In a statement, Matt Huang, co-founder and managing partner of Paradigm, stated that the platform’s third venture capital fund will concentrate on early-stage cryptocurrency startups. Early in April, rumors circulated that Paradigm was trying to raise a third fund for cryptocurrency.
The disclosure on Thursday supports rumors that Paradigm was considering a $850 million fund. This confirmation places the technical investment firm in San Francisco at the forefront of the upcoming wave of cryptocurrency ventures.
Some of the most prominent enterprises in the crypto business now were aided by Paradigm in the beginning. These initiatives include Flashbots, which developed the MEV concept, Optimism, a Layer 2 solution for the Ethereum network, and Unswap, the decentralized exchange that invented AMMs.
The platform recently supported a $70 million investment round for Babylon, a Bitcoin staking mechanism. Huang said:
“When we founded Paradigm in 2018, we believed that crypto would be one of the coming decades’ most important technical and economic shifts. That belief has only gotten stronger six years later”
The new fund aims at continuing the focus on such early-stage projects. Along with these massive open-source initiatives, Paradigm also created the well-known Ethereum development tool Foundry and the Ethereum execution node Reth.
Huang claims that the cryptocurrency market is developing quickly, with Bitcoin reaching a valuation of over $1 trillion and leading blockchain networks like Ethereum and Solana growing in response to new advancements.
Stablecoin usage is also significantly changing on the global crypto market as new infrastructure makes additional consumer uses possible. In the meantime, hundreds of millions possess cryptocurrency, which has become the “main character” of one of the most significant election years.
