ParaFi Capital, a digital asset investment firm, announced the launch of its third venture fund with $125 million in capital, as the firm continues to expand its focus on blockchain and institutional finance innovation.
The announcement was made by Ben Forman, founder and managing partner of ParaFi Capital, who confirmed that the new fund, ParaFi Venture Fund III, is part of a broader capital raise that includes an additional $325 million across other ParaFi investment vehicles. The combined raises bring the firm’s total assets under management to approximately $2 billion.
The firm is positioning the new fund to invest in companies operating at the intersection of traditional finance and blockchain technology. Key focus areas include stablecoins, tokenization, institutional decentralized finance, prediction markets, and emerging concepts such as agentic finance.
Forman emphasized that while broader crypto market sentiment remains muted, underlying fundamentals such as adoption, regulatory clarity, and institutional participation have strengthened significantly. ParaFi views this disconnect as a compelling opportunity to back founders building for the next phase of institutional adoption.
The fund reflects ParaFi’s continued strategy of investing through market cycles, with a long-term belief in the resilience and eventual success of blockchain-based technologies.
KEY QUOTE:
“Excited to announce the launch of ParaFi Venture Fund III of $125 million, alongside $325 million raised across other ParaFi vehicles, bringing ParaFi Capital firmwide AUM to $2 billion. We’re excited to double down on backing founders building at the intersection of traditional finance and blockchain, across themes such as stablecoins, tokenization, institutional DeFi, prediction markets, agentic finance, and more. Crypto sentiment remains subdued and attention has shifted elsewhere, despite the fact that we’ve never seen stronger adoption, greater regulatory clarity, or deeper institutional buy in. We believe this fundamental disconnect between market sentiment and underlying adoption creates an opportunity to partner with exceptional founders building for the next generation of institutional adoption and expanding what is possible in this space. Crypto has always been cyclical. It has always been contrarian. And it has often had to swim upstream. But great technology always wins. I’m incredibly humbled and proud of our team, which continues to quietly push the ball forward every day. Onwards!”
Ben Forman, Founder & Managing Partner, ParaFi Capital
