August 28, 2024
ParaFi Capital, a digital asset manager based in New York and backed by notable investors like KKR & Co. co-founder Henry Kravis, has raised $120 million from investors such as Theta Capital Management and Accolade Partners. This funding will be used to acquire stakes in other crypto funds that focus on specific market segments, strategies, or geographies. Over the next three to five years, ParaFi aims to build a portfolio of 30 to 50 such stakes, according to founder Ben Forman.
Project | Latest Raise | Latest Raise Date | Lead Investor | Category |
|---|---|---|---|---|
ParaFi Capital | $120M | August 28, 2024 | Theta Capital Management, Accolade Partners | VC |
Previously, ParaFi has supported nine different crypto managers using its own funds. Now, it is expanding this strategy to include outside investors, coinciding with a resurgence in the number of crypto funds. Forman noted that while general-partner stakes are common in traditional finance, they are not yet widespread in the crypto sector, but he believes this will change as more institutional capital enters the space.
Crypto funds have been actively raising money this year as digital-asset prices recover from the market crash in 2022. ParaFi, one of the larger and more well-known crypto funds, has been around for about six years and operates both hedge fund and venture-capital strategies with a team of 22 people. Other investors in ParaFi include Bain Capital Ventures, and Forman has a background with KKR.
About ParaFi Capital
ParaFi is an investment and technology firm that focuses on the digital asset ecosystem. They invest in both liquid and private digital asset markets, using a research-driven approach. Their team looks for unique opportunities in early-stage and growth businesses within the blockchain space. ParaFi aims to support exceptional founders and companies with strong competitive advantages.
Website: https://parafi.com/
About Investor
This funding consisted of Theta Capital Management and Accolade Partners.
A central focus of investor activity in the cryptocurrency space is the evaluation of new crypto projects to invest in, particularly those with huge potential. This blog provides insight into what new ventures are benefiting from venture capital support (VC funding in crypto). These new crypto projects, funded by professional investors, can dictate the next narrative in crypto and the next big crypto movers.
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