Paradigm One

History

2021: $2.5 billion fund launch

Coinbase co-founder Fred Ersam and former Sequoia Capital partner Matt Huang completed a $2.5 billion levy on November 15, 2021 for Paradigm One, their first venture capital fund. Investors managed to attract twice the amount for which they originally expected.

This new fund and its size indicate that cryptocurrency is the most exciting frontier in technology. Over the past decade, cryptocurrency has come a long way, "said Ersam and Huang.

Coinbase co-founder launches $2.5 billion fund to invest in cryptocurrency projects

The new fund managed to raise a record $2.5 billion against the expected $1.5 billion, which overcomes the $2.2 billion bar raised earlier in 2021 by the venture capital company Andreessen Horowitz. In their message, the founders of Paradigm One said that the new fund will invest in cryptocurrency companies at all stages and in different regions.

According to the Financial Times, Paradigm's first fund, which raised an initial $400 million in 2018, provided an annual internal rate of return of more than 200% during the first half of 2018.

Paradigm invests in large and small cryptocurrency enterprises in the amount of $1 million to $100 million, according to the company's website. According to Ersam and Huang, the fund intends to continue to invest in startups with "just a glimmer of the idea," as well as in a later stage company.

Both firms, more than other investors, have relied on an expanding ecosystem of applications based on, blockchain Ethereum which allows programmers to draw up contracts by automatically performing functions such as remittances.

Programs work on so-called tokens, digital assets that are provided to users over time, often giving them the right to vote in management. Paradigm has accumulated one of the largest tokens in the sector, making early bets on cryptocurrency project development teams.

Paradigm founders said they view their token investments as long-term assets, the payback of which can take at least 10 years. Like Bitcoin, digital assets can be very unstable depending on the whims of speculators.^[1]

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