Coinbase Co-Founder Fred Ehrsam's Paradigm Aims Big With $1.5B Fundraiser

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What’s Next for Coinbase (COIN) After a Blockbuster IPO
What's Next for Coinbase (COIN) After a Blockbuster IPO

Cryptocurrencies are all the rage and VC firms focused on the cryptocurrency industry have been raising record amounts of money. The latest in this happening space is that Paradigm, the VC fund led by Coinbase co-founder Fred Ehrsam, is raising $1.5 billion from assorted, limited and general partners.

The news was reported by Coindesk. While Paradigm did not respond to requests for comment from Coindesk, the latter cited internal documents as the source for the news.

For context, the cryptocurrency industry has been receiving humongous investments this year, with the funding in the first half of 2021 nearing $17 billion, outpacing last year's $5.5 billion, as per a Bank of America research report. This is a clear sign that the cryptocurrency industry is coming of age and is now being viewed by VCs and Angel Investors as a bet worth taking.

The investor deck cited above points to this investment, making Paradigm one of the largest crypto focused funds. There are potential benefits for Coinbase as well, with Ehrsam bringing the synergies. Already, Coinbase's stock was surging in the bourses in recent days, and it remains to be seen as to what effect the news of the investment would have on it, when the markets open for trading today.

If this funding round fructifies, it could place Paradigm at the top of the pack of VCs focused on cryptocurrency firms. Moreover, with this funding round, Paradigm would be in the reckoning with the likes of VC powerhouse Andreessen Horowitz, which had raised $2.2 billion earlier this year. Indeed, Paradigm and Ehrsam could potentially be the industry leaders in months to come, with this new game changing move.

Along with the news of the funding, there are reports that Paradigm is onboarding a new partner, Matthew Mizbani, a hedge fund veteran, and former growth investor at Coatue Management, a firm focused on crypto and fintech. Mizbani has been hired for managing the new funding, an indication that Paradigm and Ehrsam are serious about taking the fight to the biggies in the cryptocurrency industry.




Photo: Coinbase Homepage

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