ParaFi to Launch $200 Million Growth Fund

The fifth fund from ParaFi targets up to 30 early to mid-stage companies and is expected to close by mid-December.

article-image

Blockworks exclusive art by Axel Rangel

share

key takeaways

  • Blockworks has learned that ParaFi is launching a new fund, the ParaFi Growth Fund LP, by mid-December
  • ParaFi says that it will forgo the traditional Special Purpose Vehicle route and run a commingled fund because of the competitive deal timelines currently in the industry

ParaFi is in the process of fundraising for its next fund, the ParaFi Growth Fund, and is planning to close the round in mid-December, Blockworks has learned. 

Documents seen by Blockworks show that ParaFi is in the process of raising funds for a $200 million closed-end vehicle, and it plans on focusing on investing in up to 30 companies in the blockchain industry, particularly in early-stage venture and mid-to-late stage growth equity. Unlike some of ParaFi’s prior funds, such as the ParaFi Digital Opportunity Fund, this fund would be focused on equity plays instead of token investments. 

ParaFi has said that this would be a commingled fund, rather than a special purpose vehicle, citing the “competitive deal timelines”, investor interest, and the scope of the current deal pipeline. It’s understood that this would be a more efficient means instead of an SPV to establish a fund given the aggressive timelines involved. ParaFi also says that it has lined up the first deals for the new fund and is currently warehousing them, meaning these investments are rolled into prior funds in advance of the new fund’s launch. 

So far the company has launched the Digital Opportunities Fund, Private Opportunities Fund — which has multiple series — and the Digital Credit fund.

While the size of the fund might seem small, consider that many of the hottest DeFi and blockchain projects have considerably light capital requirements for the revenue they generate. Some of ParaFi’s prior investments include Beta Finance, a DeFi Protocol that allows for “lending, borrowing and shorting of any crypto asset” with one click which raised $5.75 million from investors in October. Another was Spectral, a protocol for programmable creditworthiness, which closed in November. ParaFi participated in this round, which came in at $6.75 million. 

Institutional interest in blockchain and crypto continues to grow, with blockchain funding shattering past the $15 billion mark during the first nine months of 2021, with $6.5 billion of that coming during the third quarter of 2021, according to data from CB Insights

In September, Blockworks reported that private equity firm KKR & Co. has invested as a limited partner in ParaFi Capital’s flagship fund. ParaFi’s other shareholders include Mike Novogratz’s Galaxy Digital. 

ParaFi declined to comment on this story.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (1).jpg

Research

With $13B in tokenized assets, strong institutional partnerships, and a clear first-mover advantage in the RWA space. The platform's methodical approach to regulatory compliance, coupled with its hybrid public-private architecture, positions it uniquely to capture significant market share in the emerging tokenization landscape. While current fee generation primarily stems from metadata transactions, the planned launch of Figure Markets, major exchange listings, and comprehensive market-making initiatives in 2025 could serve as powerful catalysts for growth.

article-image

Perena is built on the premise that as stablecoins proliferate, liquidity could fragment, and stablecoins aren’t useful if they aren’t liquid

article-image

From hackathons to trading tools and DAO governance, AI agents are redefining how we build and innovate

article-image

CME’s large bitcoin contracts are so big that investors are turning to micro bitcoin contracts

article-image

The third-largest stablecoin is going multichain for the first time in its seven-year history

article-image

Nano Labs’ news release notes confidence in bitcoin being “a reliable store of value amidst its rising global adoption”

article-image

Several big companies report third quarter earnings this week, likely moving markets