A venture capital firm co-founded by an executive of Coinbase is reportedly looking to raise between $750 million and $850 million for a new fund.
According to a new report by 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 sum, which would make it one of the industry’s largest VC firms since 2022’s crash.
Previously, in 2021, Paradigm raised $2.5 billion, at the time making it the largest-ever crypto investment firm. Last year, Paradigm removed all mentions of digital assets from its website, replacing them with artificial intelligence (AI), according to Bloomberg.
However, the changes were undone just days later. Furthermore, Paradigm has a history with the bankrupt crypto exchange platform FTX as it had invested $278 million into it. Huang, Paradigm’s other co-founder, also testified in former FTX CEO Sam Bankman-Fried’s trial, according to the report.
Paradigm is also part of a class-action lawsuit filed by FTX investors who claim that Paradigm and two other firms, including Sequoia, gave FTX a fake aura of legitimacy by investing millions of dollars into it.
Last week, Paradigm valued decentralized social media firm Merkle Manufactory, the lead developer behind the Farcaster network, at nearly $1 billion, according to a previous Bloomberg report.
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