Exits Mount at Crypto Venture Firm Paradigm

Paradigm, the crypto-focused venture firm founded by Coinbase co-founder Fred Ehrsam and former Sequoia partner Matt Huang, is shrinking quickly.

At least eight employees, including two investment partners and four engineers, have left the firm since the start of October, according to The Information’s tally based on the company’s website. The exits make up a significant portion of Paradigm’s engineering and investing staff.

The departures have been occurring since before the collapse of FTX, which wiped out the $278 million Paradigm had invested into the crypto exchange. Though crypto-focused venture firms are sitting on mountains of dry powder, venture investing in crypto startups has slowed dramatically over the past year.