Paradigm

In the midst of a crypto market downturn in 2018, two figures with deep industry roots, Fred Ehrsam, a co-founder of Coinbase, and Matt Huang, a former partner at Sequoia Capital, teamed up. They founded Paradigm based on a shared belief: that crypto would be one of the most significant technological and economic shifts for decades to come. Their goal was to create the kind of crypto-native investment firm they would have wanted as entrepreneurs. Paradigm launched with an initial fund of $400 million, securing backing from institutional investors like Yale University. The firm took a hands-on, research-driven approach, aiming to be more than just investors by actively contributing to the projects they backed. This strategy involves providing support in engineering, security, and operations. A major milestone arrived in November 2021 when Paradigm announced a new $2.5 billion venture fund, which at the time was the largest in crypto history. This demonstrated significant conviction during a period of rapid growth in the digital asset space. The firm has a portfolio that includes foundational crypto companies like Uniswap, Optimism, and Chainalysis. Despite the write-down of its investment in FTX following the exchange's collapse, Paradigm has continued to invest. In June 2024, the firm announced a new $850 million fund to continue backing early-stage crypto projects, reinforcing its long-term thesis.