A venture capital firm co-founded by a Coinbase executive is reportedly looking to raise between $750 million and $850 million for a new fund.
According to a new one report According to Bloomberg, anonymous sources familiar with the matter say that crypto venture capital firm Paradigm – founded by Coinbase Global co-founder Fred Ehrsam and ex-Sequoia Capital partner Matt Huang – is currently in talks to raise the amount, making it one of the largest venture capital firms in the industry since the 2022 crash.
Previously, in 2021, Paradigm increased $2.5 billion, making it the largest crypto investment company ever at the time. According to Bloomberg, Paradigm removed all mentions of digital assets from its website last year and replaced them with artificial intelligence (AI).
However, the changes were reversed just days later. Moreover, Paradigm has a history with the bankrupt crypto exchange platform FTX, having invested $278 million in it. Huang, Paradigm’s other co-founder, also testified in the trial of former FTX CEO Sam Bankman-Fried, according to the report.
Paradigm is also part of a class action lawsuit filed by FTX investors who claim that Paradigm and two other companies, including Sequoia, gave FTX a fake aura of legitimacy by investing millions of dollars in it.
Last week Paradigm valued decentralized social media company Merkle Manufactory, the lead developer behind the Farcaster network, at nearly $1 billion, according to an earlier Bloomberg report.
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Featured image: Shutterstock/spainter_vfx/Nikelser Kate