Cryptocurrency investment firm Paradigm has announced the launch of a new $2.5 billion venture fund focused on next-generation crypto-related companies and protocols. This is the industry's largest cryptocurrency fund so far. It even surpasses the one by Andreessen Horowitz (a16z) by $300 million ($2.2 billion).
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The firm said in an announcement that the funds will be put alongside Paradigm's existing flagship fund "across all stages and geographies."
"Web3 applications have grown to reach tens of millions of users, yet are still a far cry from the billions of Web2 users. The journey is just beginning, and the potential of crypto has never been more clear," the announcement says.
In June this year, a16z completed the fundraising for its third crypto fund, which attracted $2.2 billion. According to reports, the fund plans to charge about 2.5% fees for most of the first decade. Out of a $2 billion fund, its earnings in fees alone will amount to as much as $50 million annually.
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