The web3 venture firm Paradigm is in talks with investors of raising between $750 million and $850 million for a new investment vehicle.

If it reaches $750 million, the fund would be the biggest since the crypto market crash of May 2022, reports Bloomberg citing people familiar with the matter.

The potential deal bodes well for the crypto market recovery. However, Paradigm said crypto has been "so back" since July 2023, The Block previously reported.

Paradigm recently led numerous raises for crypto startups, such as a $55 million financing round for the zero-knowledge proofs startup Succinct Labs in mid-March and an $18 million Series A for the web3 infrastructure startup Privy in November 2023.

Paradigm had formerly set up a $2.5 billion venture fund in November 2021 specifically for crypto companies and protocols. Not all the bets paid off, however, as the firm had invested a total of $278 million in the Sam Bankman-Fried's collapsed crypto exchange FTX by early 2022. Paradigm has since marked down its investments in FTX to zero, according to The Block's prior reporting.