Paradigm’s New Venture Fund

Nov 15, 2021 | Matt Huang

We started Paradigm in 2018 with two strongly-held beliefs.

First, that despite being in the midst of a “winter,” crypto was poised to be one of the most important technical and economic shifts over the coming decades with the potential to fundamentally change money, the financial system (DeFi), and the internet more broadly (Web3).

Second, that the best way for us to contribute to this revolution was to build an investment firm uniquely adapted to crypto, so that we could be the best possible partner to crypto entrepreneurs and communities. We’ve immersed ourselves in the frontier of protocol research and the culture of Web3. And we’ve built a team of domain experts around research, engineering, security, talent, communications and marketing, legal and policy, and everything else crypto entrepreneurs might need to advance their projects.

Our conviction in these beliefs has only strengthened over the past three years, and we are pleased to announce a new $2.5 billion venture fund to continue investing in the next generation of crypto companies and protocols. This new fund will invest alongside our existing flagship fund across all stages and geographies.

This new fund and its size are reflective of crypto being the most exciting frontier in technology. Over the past decade, crypto has come a long way. But cryptocurrencies are still owned by less than ten percent of the global population. Decentralized financial systems have grown to hold over $100 billion in cumulative assets, yet still represent a small drop in the context of the traditional financial system. Web3 applications have grown to reach tens of millions of users, yet are still a far cry from the billions of Web2 users. The journey is just beginning, and the potential of crypto has never been more clear.

Our mission at Paradigm remains unchanged: to be the earliest and most helpful partner to crypto entrepreneurs and communities. We’ll continue incubating ideas. We’ll continue investing at the earliest stages when there’s just a glimmer of an idea. We’ll also partner with later-stage category leaders, and support companies at every stage in between.

There has never been a more exciting time to work in crypto, and we are grateful to our limited partners for their ongoing support and to the entrepreneurs who’ve entrusted us as their partners. If you’re an entrepreneur working on the frontier, we’d love to talk!

Matt, Fred, and the Paradigm team

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Disclaimer: This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment and should not be used in the evaluation of the merits of making any investment decision. It should not be relied upon for accounting, legal or tax advice or investment recommendations. This post reflects the current opinions of the authors and is not made on behalf of Paradigm or its affiliates and does not necessarily reflect the opinions of Paradigm, its affiliates or individuals associated with Paradigm. The opinions reflected herein are subject to change without being updated.