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

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 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.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

Silk Road founder Ulbricht made a triumphant return to the Bitcoin Conference, 10 years on from sentencing

article-image

A Blockworks Research report looked at who could take up some of the marketshare in the launchpad space

article-image

Business-to-business stablecoin payments are on the rise, per a report from Artemis, Dragonfly and Castle Island

article-image

Crypto continues to do its thing: incentivizing behavior

article-image

Kraken will soon offer Backed ‘xStocks’ as Solana tokens

article-image

In a unanimous decision, the US Court of International Trade has ruled that Trump’s IEEPA tariffs are unlawful