DeFi

Partner

<ul>
 <li>ParaFi Capital raises $120M from investors highlighting the increased optimistic approach in the crypto sector.</li>
 <li>A portion of this capital will be used to acquire General Partner stakes in other crypto funds.</li>
</ul>
ParaFi Capital, a digital asset management firm based in New York, raised<a href="https://www.binance.com/en-NG/square/post/2024-08-29-parafi-capital-raises-120-million-for-crypto-fund-acquisitions-12800238871561" target="_blank" rel="noopener noreferrer nofollow"> $120 million</a> from investors, including Theta Capital Management and Accolade Partners. This fundraiser highlights the increasing growth and renewed optimism in the crypto investment sector.
ParaFi Capital, <a href="https://www.aima.org/widgets/team_members/teamMemberDetails/?id=D0728036-2586-42BC-B580D65A31F05166" target="_blank" rel="noopener noreferrer nofollow">founded in 2018</a> by Ben Forman,&nbsp; has been a significant player in the digital asset sector. The firm operates on both hedge fund and venture capital strategies, focusing on cryptocurrency and blockchain investments.&nbsp;
With a 22-member team, ParaFi has consistently adapted to the evolving market, emphasizing long-term value creation through investments in early-stage blockchain projects and <a href="https://thenewscrypto.com/layer3-token-faces-12-decline-amid-strategic-partnership/" target="_blank" rel="noopener noreferrer nofollow">DeFi</a> protocols.
In addition, a portion of this capital will be used to acquire general-partner (GP) stakes in other crypto funds, focusing on specific market segments. Over the next three to five years, ParaFi aims to build a portfolio of 30 to 50 such stakes. This approach is designed to diversify the firm’s exposure to the crypto market.
<h3 class="wp-block-heading" id="h-institutional-investors-bet-big-on-crypto">Institutional Investors Bet Big on Crypto</h3>
Ben Forman explained that while GP stakes are a growing asset class in traditional finance, they have not yet been established in the crypto sector.&nbsp;
The involvement of prominent investors like Theta Capital Management, Accolade Partners, and Henry Kravis, co-founder of KKR &amp; Co., highlights the growing confidence in the crypto market.&nbsp;
In addition to ParaFi’s fundraising, other crypto firms and venture capitalists (VCs) are also raising capital. For example, Lemniscap, a crypto-focused VC firm, recently raised $70M to invest in startups on blockchain technology. These efforts indicate the increased funding activity in crypto as the market recovers from the <a href="https://thenewscrypto.com/altcoin-expert-who-warned-everyone-to-sell-before-the-2022-market-crash-wants-you-to-buy-this-dogwifhat-wif-and-dogecoin-doge-rival-valued-under-0-01-should-you/" target="_blank" rel="noopener noreferrer nofollow">2022 market crash</a>.
Moreover, ParaFi’s strategic shift and successful fundraising signal a new phase of growth and institutionalization in the <a href="https://thenewscrypto.com/crypto-market-soars-on-dovish-stance-as-powell-signals-rate-cuts/" target="_blank" rel="noopener noreferrer nofollow">cryptocurrency market</a>. By building a diverse portfolio of crypto funds, ParaFi is positioning itself for continued success. It is contributing to the broader development of the crypto investment ecosystem.
Highlighted Crypto News Today: <a href="https://thenewscrypto.com/sec-cracks-down-on-opensea-as-nft-market-faces-legal-threat/" target="_blank" rel="noopener noreferrer nofollow">SEC Cracks Down on OpenSea as NFT Market Faces Legal Threat</a>

ParaFi Capital Secures $120M Signaling Increased Confidence in Crypto

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