New Frontier Paradigm founders Fred Ehrsam and Matt Huang have raised $2.5 billion for their maiden VC fund, Paradigm One. It is the largest investment vehicle of its kind dedicated to the crypto and Web 3.0 space, according to the Financial Times.
They are active in backing DeFi protocols, Bitcoin mining, stablecoin protocols, and Layer 2 scaling solutions on Ethereum.
Their first fund amassed $400 million, which generated an IRR of over 200% in the first six months of 2021, according to the Financial Times. A couple of Paradigm’s successful exits include Coinbase and DeFi protocol Compound, as per Crunchbase.
According to Paradigm, less than 10% of the world’s population owns some crypto. And while the DeFi market has more than $250 billion in total value locked, it still pales in comparison to the size of the “traditional financial system,” Huang argues. Web 3.0 similarly has a long way to go before it reaches wide-scale adoption.
https://www.ft.com/content/49a2f155-29cf-40e6-a51c-fd12351ef2cc