On the 5th of October 2018, Bloomberg published an article stating that Yale University’s Investment office which is under the stewardship of acclaimed fund manager David Swensen has decided to make a fund allocation to Paradigm. Paradigm is a new cryptocurrency fund into which Yale has made a $400 million contribution. Aside this, CNBC also reports that in a separate development, Yale University has invested in Andreessen Horowitz’s $ 300 Million Crypto fund.
This is seen as an encouraging development as the crypto market currently seems to be consolidating with significantly low volatility as compared to some few months prior. Swensen is known to have invented the Endowment Model for investing which has revolutionized the industry and has been able to grow Yale’s endowments from a figure of a little over $ 1 billion in 1985 to the current figure of $29.4 billion. David Swensen’s feats in the space has been remarkable and acknowledged widely so much so that he landed the HFM Hall of Fame as an Institutional Investor Alpha in 2008.
The move by Yale and Swensen into Crypto has been described by some as surprising, however, the move seems like the natural progressive course of action with an increasing changing world and investment scene. Investing in Paradigm shows confidence in the market. Paradigm Fund is being led by Fred Ehrsam (co-founder at Coinbase), Matt Huang (Former Principal at Sequoia Capital), and Charles Noyes (Formerly of Pantera Capital).
These cryptocurrency investment placements by Yale University with both Paradigm and Andreessen Horowitz’s Fund shows the Ivy League school’s willingness to trust top VCs with their investments in a relatively new market.
There are yet to be official responses from both Yale University and recipient Funds as at the time of writing this article… Hopefully there will be official statements made to these reports by the mentioned entities soon.