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Cryptocurrency-focused investment firm Paradigm announced Monday morning that it has raised $2.5 billion from investors for the largest-ever cryptocurrency venture fund, surpassing the $2.2 billion raised by Silicon Valley monolith Andreessen Horowitz earlier this year. Because the meteoric rise of the nascent market helps early stage crypto firms. Record amount of cash.

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In Monday’s announcement, Paradigm Managing Partners Fred Ehrsam, who founded Coinbase, and Matt Huang, a former Sequoia Capital partner, said The new fund will invest in cryptocurrency companies across all phases and geographies, along with the firm’s flagship fund.

Reflecting a wave of investor interest, the fund raised $1.5 billion. crossed over aim The paradigm was set when it first began raising money last month and less than five months after Andreessen Horowitz made waves with his third crypto fund—the largest in the space at the time.

The San Francisco-based investment firm listed a $100 billion decentralized finance space and so-called Web3 applications, which refers to apps built on blockchain platforms, as two areas ripe for investment.

in one Interview with financial TimesEhrsam, 33, said token-based apps in particular have room to grow and that “decades into the future, it is very clear that the world’s largest institutions will be powered by tokens” like the world’s largest internet companies currently. are powered by the network.

Paradigm launched in 2018 and has since accumulated over $10 billion in assets, with investments in around 40 crypto firms, including Coinbase and FTX Trading.

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