Overview
- Paradigm has unveiled a new $1.2 billion fund aimed at investing in crypto, AI, robotics, and other tech startups.
- The venture capital firm has previously supported companies such as Nous Research, Zipline, True Anomaly, Hyperliquid, and Kalshi.
- Paradigm emphasized its ongoing commitment to crypto while exploring intersections with AI technology.
The venture capital firm Paradigm has successfully raised a $1.2 billion fund that will focus on investments in AI, robotics, crypto, and additional technologies, thus broadening its investment strategy beyond just digital assets.
Although crypto continues to be a core aspect of Paradigm’s operations, the San Francisco-based firm announced on Wednesday that its fourth fund will also include investments in AI, autonomous systems, and other innovative technologies, all while maintaining a research-oriented approach.
“$1.2B to invest in steep exponentials. Eight years ago, we were backed by individuals who believed in the crypto frontier,” stated Alana Palmedo, managing partner at Paradigm, on X. “Now, we’re intensifying our focus as various frontiers intersect, including AI, crypto, space, deep tech, and energy. We are thankful for our partners.”
Founded in 2018 by Matt Huang and Fred Ehrsam, a co-founder of Coinbase, Paradigm has emerged as one of the leading venture investors in the crypto space. The firm previously raised a $2.5 billion fund for crypto investments in 2021 and an $850 million early-stage blockchain fund in 2024.
“Our strategy is to remain close to the ground—researching, building, and investing alongside founders, starting with crypto and now expanding into AI, robotics, and other frontiers,” the firm explained in a statement.
Among its investments, Paradigm highlighted support for Zipline, a developer of autonomous drones, the space defense startup True Anomaly, and Nous Research, which is known for its AI technology including the Hermes Agent.
On the crypto front, Paradigm mentioned investments in the decentralized exchange Hyperliquid, the prediction market platform Kalshi, and Tempo, a stablecoin-focused blockchain that it co-developed with Stripe.
The firm also pointed out various internal initiatives, including Ethereum development tools like Foundry and Reth, the AI project Centaur, and EVMbench, a blockchain security benchmark created in collaboration with OpenAI.
This announcement arrives as crypto companies increasingly develop infrastructure for AI agents capable of managing financial transactions. Firms such as Coinbase and Stripe have created payment solutions that enable AI agents to utilize wallets, stablecoins, and other financial tools to perform tasks with minimal human oversight.
“Sufficiently steep exponentials seem like magic, and we are witnessing more global-scale exponentials than ever before,” the firm remarked. “This period favors those who are willing to discard traditional playbooks and frequently reassess their understanding of reality. This is a mindset we share with the founders we support.”