ParaFi, a New York-based digital asset manager backed by KKR co-founder Henry Kravis, has raised $125 million for a new venture capital fund, Bloomberg reported.
The money adds to the $325 million ParaFi said it has raised for existing crypto investment strategies since the start of 2025. The company now manages around $2 billion.
Founder Ben Forman, who left KKR in 2018, said the new vehicle would focus on startups working in the areas of stablecoins, tokenization and on-chain financial products for large institutions.
Since its launch, ParaFi has supported companies including prediction marketplace Polymarket, crypto asset manager Bitwise, decentralized finance company Kyber Network, and custodian Anchorage.
The fundraiser stands out because it comes during a period of weakness for the crypto sector. Bitcoin has fallen more than 26% from the 2026 high reached in January and only recently reclaimed the $70,000 mark. The broader market, measured via the CoinDesk 20 Index (CD20), has lost a third of its value over the same period.
Investors are starting to separate short-term token price fluctuations from long-term arguments for blockchain-based financial infrastructure, Forman said, according to Bloomberg.
