Broker

Pantera and Yale-backed Paradigm get behind crypto broker in new fundraising round

Quick Take

  • Pantera Capital and Paradigm have backed crypto broker Tagomi in a new fundraise
  • The firm, which helps investors trade electronically, has raised $28 million in total

Yale-backed Paradigm and Pantera Capital are getting behind crypto broker Tagomi as part of a $12 million fundraise, the company announced Monday.

The new round brings the firm’s total funding to date to $28 million, according to a press release. Previously, the firm raised a $16 million round, which included participation from investors such as Digital Currency Group, Peter Thiel’s Founders Fund, and SV Angel. Paradigm, a new crypto investing firm, notably counts Yale University as one of its investors.

Led by Greg Tusar, formerly head of electronic trading at Goldman Sachs, and Jennifer Campbell, who spent two years on the investment team at Union Square Ventures, the firm offers trading services that aim to make investing in the nascent crypto market less complicated for investors.

“We view the development of an electronic agency offering as a critical step in empowering funds like Pantera to have complete control and anonymity when transacting in digital assets,” Pantera CEO Dan Morehead said in a statement. “We believe it is a key component to carrying out our fiduciary duty in achieving best execution for our fund.”

The new funds will allow the firm to scale and bring on more clients. It will also allow the firm to offer new services including margin, lending, and shorting. 

Already, there is a consulting element to the firm’s services. Let’s say a big client shows up and wants to make a multi-million dollar crypto trade. Tagomi would show the client the best way to go about making that trade based on the best available data, aggregated from multiple exchange venues. Where that trade is executed and the timing at which it is executed could vary. It could happen across multiple exchanges or just one. It could happen over the course of a few hours or a few days. And in some cases trading algorithms could step in to help with the decision-making process. At the end of the day, the goal is to achieve best-execution as to limit slippage and market impact. 

The firm counts a number of family offices and digital asset funds as its clients. “I see Tagomi as solving those challenges and presenting the institutional community with a streamlined, professional end-to-end service which is simple and transparent to the user, while very effectively tackling the issues of best execution, custody, and treasury management,” Thomas Bailey, investment officer of Four Arrows, said in a statement.