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Paradigm and a16z near $900M in funding deals this year

Author: Content Editor
The funds Paradigm and Andreessen Horowitz (a16z) are on track to close $1 billion in deals this year, further expanding their influence in the crypto industry. These funds not only bring new projects to maturity but also influence existing ones through voting. While investments do not necessarily equal endorsement, the funds have participated in a long list of smaller projects, which brings faster development but also holds the risk of insider selling.

As of September 24, Paradigm and a16z achieved over $856 million in funding, with a focus on developer tools. Paradigm also focuses on the Base and Zora ecosystems, while a16z covers crypto social media, lending, and marketplace projects.

Although VC funding is still shaping the crypto landscape, the third quarter is expected to see over $2 billion in funding rounds, with a focus on infrastructure and tool creation rather than NFT projects and games. The prevalent types of VC deals were seed rounds or Series A funding, with over $360 million going to undisclosed rounds in the past month.

Paradigm's top deals include investments in Monad and Farcaster, totaling $375 million. A16z's top deals include investments in Eigen Layer, Espresso Systems, and Story Protocol, totaling $208 million.

High-profile funds like Robot Ventures and Polychain Capital are also contributing to the inflow of funds, with over $860 million in deals closed so far. However, Polychain Capital is down 84% on its investments after the market shifted in March.

The majority of crypto funding and recipients are based in the USA, with over 2,900 projects receiving funding in the past year, outpacing Europe and Asia.

One successful investment is the project Celestia (TIA), which is currently trading at $6.20. Celestia shared its early entrance tokens with backers such as Bain Capital, Robot Ventures, and Polychain Capital. However, with the presence of VC, TIA may face pressure after its latest token unlock, which will increase its circulating supply by over 84% in 36 days.

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