Yale University drops serious cash into crypto investment fund
According to a report by Bloomberg last Friday, Yale University is jumping into the cryptocurrency fray. The school, which counts as its alumni a number of political leaders and several presidents, recently participated in the funding round of the Paradigm cryptocurrency fund. That fund has now raised over $400 million.
The fund was started by Coinbase co-founder Fred Ehrsam, former Pantera Capital employee Charles Noyes and Sequoia Capital Partner Matt Huang. The new fund targets early-stage projects in the blockchain and cryptocurrency industries.
Yale's investment fund is managed by the school's chief investment officer, David F. Swensen. He is viewed by many as a pioneer in institutional investing and has managed the fund for the past 32 years. 60% of the fund's assets are used for investing in alternative projects.
This past June, Swensen invested in a $300-million crypto fund started by Andreessen Horowitz. The firm said at the time of its new fund, "A $300M venture fund that will invest in crypto companies and protocols. Our fund is designed to include the best features of traditional venture capital, updated to the modern crypto world."
In an interview with Business Insider this past June, Capital Fund Law Group founder John Lore pointed out that more academic institutions and universities are turning to the crypto and blockchain spaces for their investment programs. He said, “We’re seeing some academic institutions getting involved on a limited basis for strategic reasons. I can’t say the names of [the academic institutions] because that’s attorney-client but we have people mostly on the East Coast that have begun doing investments in this space on a fairly modest basis."
The exact amount of Yale's investment in Paradigm is not known.