The Paradigm of Coinbase Co-Founder Fred Ehrsam Aims Big With a $1.5 Billion Fundraiser.
Cryptocurrencies are all the rage, and cryptocurrency-focused venture capital firms have been raising record sums of money. Paradigm, the VC fund managed by Coinbase co-founder Fred Ehrsam, is seeking $1.5 billion from a variety of limited and general partners, according to the latest news in the field.
Coindesk was the first to report the news.
Coindesk reported internal documents as the source of the news, while Paradigm did not answer to inquiries for comment.
According to a Bank of America research report, the cryptocurrency business has been attracting massive investments this year, with funding in the first half of 2021 exceeding $17 billion, beating last year’s $5.5 billion. This is a clear indication that the bitcoin sector is maturing and that VCs and Angel Investors now see it as a risk worth taking.
This investment is mentioned in the investor deck, making Paradigm one of the largest crypto funds. With Ehrsam introducing the synergies, there are potential benefits for Coinbase as well. Coinbase’s stock has been skyrocketing in recent days on the stock exchanges, and it will be interesting to see how the news of the investment affects it when the markets open for trading today.
If this round of funding succeeds, Paradigm might rise to the top of the list of bitcoin venture capital firms. Furthermore, with this round of funding, Paradigm will be competing with VC giant Andreessen Horowitz, which raised $2.2 billion earlier this year. With this new game-changing initiative, Paradigm and Ehrsam might potentially be the industry leaders in months to come.
Along with the money, there are rumors that Paradigm is bringing on a new partner, Matthew Mizbani, a hedge fund veteran and previous growth investor at Coatue Management, a crypto and fintech focused firm. Mizbani has been engaged to manage the new funding, indicating that Paradigm and Ehrsam are serious about taking on the crypto industry’s large players.