VC thinks there will be great opportunities in crypto investing

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Paradigm, a crypto-focused venture capital firm, has reportedly raised a new $ 1.5 billion fund. The fund could be one of the largest crypto-focused funds to date. A crypto-focused investor at 7% Ventures believes there will be even more opportunities to invest in the space.

Venture capital firm Paradigm could be the latest to double its crypto investments, as it seeks to raise new fund between $ 1.25 billion and $ 1.5 billion, according to CoinDesk.

This is another sign that more and more investors are seeing value in funding crypto startups.

“A lot of capital is being put into crypto because people are seeing a lot of opportunity right now,” said Ivailo Jordanov, a crypto-focused investor and partner at 7percent Ventures. “They don’t fundamentally raise capital to buy cryptocurrencies or anything, but the capital is used to support projects that are being built in space.”

Some of these projects that are growing in popularity relate to decentralized finance. And Jordanov says the sheer volume of development in space is the reason it’s attracting so much capital right now.

Jordanov also believes there will be more opportunities to fund emerging crypto gaming startups.

Paradigm, the crypto-focused venture capital firm led by Coinbase co-founder Fred Ehrsam, could potentially have one of the largest crypto funds, alongside Andreessen Horowitz’s $ 2.2 billion fund. , the largest in the industry to date.

Paradigm did not respond to a request for comment.

Fred Ehrsam, co-founder of Paradigm. Coinbase

Paradigm’s interim fund could add to billions of capital already paid to crypto startups. In the first half of 2021, investment in VC crypto was over $ 17 billion, up from a total of $ 5.5 billion in 2020, according to PitchBook.

Going forward, Jordanov also believes startups as a whole will look to embrace more crypto-related technologies.

“This really is the main takeaway, is that there is smart capital coming into space now that is looking to capitalize on this opportunity,” Jordanov said.

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