Digital asset management firm Parafi Capital has recently completed a $120 million funding round. The round was led by Theta Capital Management and Accolade Partners, and also saw participation from other investors. This latest development, however, appears to be another proof that crypto funding may be starting to pick up pace again.
Like Parafi, Lemniscap, another crypto-focused venture capital (VC) firm, recently raised $70 million to support startups. With many more similar cases, there is no doubt that there is now a positive air around the crypto market, so much that investors are getting increasingly confident about backing crypto firms.
ParaFi Capital Expects Crypto Funding to Surge Even More
As earlier mentioned, positive sentiment has returned to the market since crypto prices have started recovering. So, for firms like Parafi, raising enough capital will be very important to its growth ambitions and strategies.
This is detailed in a Bloomberg report, which claims that Parafi will use part of the newly-raised capital to acquire general-partner (GP) stakes in other crypto funds. According to the report, the asset manager is planning to have about 50 of these stakes over the next three to five years.
Parafi Capital, meanwhile, is no stranger to investing into crypto businesses. Since its inception in 2018, it has gone on to throw its capital behind many digital asset companies, including digital asset infrastructure provider Parfin.
Earlier this month, Parfin announced that it had successfully raised $10 million in its Series A funding round. However, the round was led by none other than ParaFi Capital.
Going by the explanation of Ben Forman, founder of ParaFi, the firm believes that the crypto-fund space may be saturated soon. This belief comes from their study of the space, and how it has evolved over the years. So now, the firm seeks to establish a strong foothold in the niche before any such thing happens. Part of his statement reads:
“We believe there will be many more crypto funds as institutional capital enters this space. It’s important to have specialization and focus, whether it’s across geography, theme or type of investment.”
