ParaFi Capital is a San Francisco-based investment firm founded in 2018 by Ben Forman, who serves as Managing Partner. The fund focuses on decentralized finance (DeFi) and broader crypto infrastructure, operating at the intersection of traditional finance and blockchain networks. Forman previously worked at Blackstone, which shaped ParaFi's approach: applying institutional-grade analysis to early-stage crypto protocols.
The firm is one of the earliest dedicated DeFi investors in the United States. Rather than taking purely passive positions, ParaFi participates actively in protocol governance – submitting proposals, voting on treasury decisions, and engaging developer communities. This model – part investor, part active stakeholder – became a defining characteristic. Public information on total AUM is limited; the firm has not disclosed fund sizes officially, though industry reports have cited figures in the range of several hundred million dollars across vehicles.
Notable investments
- Aave – one of ParaFi's highest-profile early bets. The firm invested before Aave rebranded from ETHLend and remained an active governance participant.
- Uniswap – backed the leading decentralized exchange; ParaFi contributed to early UNI governance discussions.
- MakerDAO – held MKR tokens and submitted governance proposals, including introducing real-world assets into the Maker collateral framework.
- Compound – early backer of the lending protocol that pioneered yield farming mechanics.
- The Graph – invested in the decentralized indexing protocol for blockchain data.
- Balancer – backed the automated market maker with programmable liquidity pools.
- dYdX – supported the decentralized derivatives exchange during its early growth phase.
- Goldfinch – participated in decentralized credit protocol targeting emerging-market borrowers.
- Aztec Network – backed privacy-preserving zk-rollup infrastructure on Ethereum.
Team
Ben Forman is the founder and Managing Partner. Before starting ParaFi, he worked at Blackstone in private equity, giving him a background in large-scale capital allocation and deal structuring. He has spoken publicly about bridging institutional finance norms – due diligence, risk management, governance accountability – into crypto investing. ParaFi operates with a small, specialized team; the firm has not made extensive public disclosures about additional investment staff.
Recent activity
Public information on ParaFi's activity after mid-2024 is limited. Through 2023 and into 2024, the firm continued its focus on DeFi infrastructure, with reported interest in real-world asset (RWA) tokenization – a theme consistent with its earlier MakerDAO governance involvement. ParaFi also maintained positions in projects spanning Ethereum Layer 2 scaling and cross-chain interoperability. Whether the firm raised a new dedicated vehicle in 2025 is not publicly confirmed.
ParaFi's geographic focus remains the United States, with portfolio companies concentrated in Ethereum-adjacent ecosystems. The firm's institutional background and governance-active approach continue to differentiate it from earlier crypto-native funds. As DeFi matures and regulatory clarity improves in the US, ParaFi's early portfolio – anchored in protocols like Aave and Uniswap that now process billions in monthly volume – positions it well for realized returns. The key open question is whether the firm has built enough breadth beyond Ethereum DeFi to capture value in emerging ecosystems.
