The biggest venture capital firms are managing a lot more moolah than you thought – TechCrunch

holy smoke.

It’s the collective reaction around these parties after reading a new post from business journalist Eric Newcomer, who has smartly taken the time to review filings for his newsletter, Newcomer, which reveals how much money some of the biggest venture capital brands are currently managing. The numbers are, frankly, staggering.

Note that these are all companies that are structured as registered investment advisers and therefore required to disclose their assets under the rules of the Securities & Exchange Commission.

The biggest surprise, per Newcomer, is that four-year-old crypto investment firm Paradigm Capital revealed that its assets under management had soared to $13.2 billion. Did you guess this amount? We wouldn’t, although in all honesty, we haven’t spent a lot of time thinking about it either. (We have lives to lead.)

What we knew before: Paradigm was created four years ago by Coinbase co-founder Fred Ersham and former Sequoia Capital investor Matt Huang. (Quatre is pretty young at these things.) The pair, which already oversees about 50 people, recently closed its biggest fund to date with $2.5 billion at the end of last year. . .which seemed like a lot of money when they announced it in November and now seems like less money.

What we haven’t really taken into account are the bets Paradigm has made in companies that have skyrocketed in value over the last two years in particular, including, of course, Coinbase. Its market capitalization is currently $43 billion, but its market capitalization reached $85 billion when it started listing on the stock exchange in April last year, and since it was a direct listing , investors were free to sell immediately. Paradigm happened to be the company’s second largest outside investor, with an 11.4% stake in the company, which explains a lot. It is also an early investor in Bahamas-based exchange FTX Ventures, which was valued at $32 billion by its private investors when it last raised funds in January.

But wait, there’s more.

If you had to guess how many assets Andreessen Horowitz (a16z) managed, how many would you say? Maybe $25 billion? You would be wrong by about half, as it turns out. Indeed, according to revelations made by Newcomer, the 12-year-old company was managing $54.6 billion in assets at the time of the revelations made last week. That’s more than half of what he was managing when he last disclosed. (The newcomer doesn’t mention when this was done – we’re still looking for this one – but we’re guessing it wasn’t over a year ago.)

How did it happen? As with Paradigm, considerable fundraising played a role, but in the case of a16z, fundraising played a role. many bigger role. The company has raised a stunning $25.5 billion in capital from investors since 2012, including through its crypto and bio practices (and that’s not including the $4.5 billion the company reportedly raised for its crypto branch right now). Add to that its bet on Coinbase – the company owned about a quarter of the exchange when it started trading publicly – and a big bet on Github which has gone pretty well (especially if the company has retained this Microsoft action), and you begin to appreciate how we ended up here.

As for Sequoia Capital, it’s a firm with a long history — it’s now 49 years old — but God, it manages a lot of money. According to documents Newcomer uncovered, his most recent tally is $85.5 billion.

The amount puts it ahead of Coatue (it disclosed $72.1 billion in assets last week) but behind Tiger Global, which apparently has a jaw-dropping $124.7 billion.

More here.

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