Paradigm Raises $1.2 Billion Fourth Fund for AI and Robotics, Continues Backing Crypto Startups

Crypto venture firm Paradigm announced a $1.2 billion fourth fund targeting crypto, AI, robotics, and other technology startups, while saying it will continue backing crypto startups.

“Crypto VC Paradigm launches $1”

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In its statement, Paradigm said it will expand investments into AI, autonomous hardware, and other emerging technologies while keeping its research-driven approach, and managing partner Alana Palmedo wrote on X, “$1.2B to invest in steep exponentials.”

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Paradigm said it was founded in 2018 by Matt Huang and Coinbase co-founder Fred Ehrsam, and it previously raised a $2.5 billion crypto fund in 2021 and an $850 million early-stage blockchain fund in 2024.

The firm highlighted early investments from the new vehicle including autonomous drone developer Zipline, space defense startup True Anomaly, and AI research company Nous Research, and it also pointed to crypto investments including decentralized exchange Hyperliquid and prediction market platform Kalshi.

CoinDesk and Decrypt both tied the fundraise to Paradigm’s broader shift beyond digital assets, with CoinDesk noting the fund is focused on artificial intelligence and robotics while leadership says it remains committed to crypto investing.

Managing partner Alana Palmedo told Bloomberg, “Crypto was the first frontier for us, and it continues to be a really exciting one,” while adding, “But there’s so much else happening right now that’s pretty hard to ignore.”

CoinDesk reported that Paradigm has already deployed capital from the new fund into Zipline International, valued at $7.6 billion in January, and into space defense startup True Anomaly, which reached a $2.2 billion valuation in April.

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In its own blog post coverage, CoinDesk said co-founder Matt Huang rejected the idea that crypto and AI compete, writing that the firm did not view them as “a zero-sum competition” and expected “plenty of overlap” between the two technologies.

The Block similarly described Paradigm’s mandate as investing in crypto, AI, robotics, and other frontier technology startups, while saying the firm will continue backing crypto startups and investing in founders at every stage.

PYMNTS also reported that Paradigm’s shift is tied to AI and robotics funding, and it cited Bloomberg’s framing that the crypto market has been struggling while venture funding in AI made up 70% of startup investments worldwide during the second quarter of 2026.

The Block said Paradigm’s new vehicle will invest in crypto, AI, robotics, and other frontier technology startups, and it listed additional non-crypto investments including manufacturing platform SendCutSend and AI tools such as Centaur and EVMbench.

“In brief - Paradigm announced a $1”

Decrypt

The Block also reported that Paradigm counts university endowments among its institutional investors and said the firm has nearly $12 billion in assets under management at the end of 2025.

CoinDesk added that Paradigm’s interest in AI predates the latest fund, citing a June 2023 post on X in which Matt Huang said the firm had “never been more dedicated to crypto” while acknowledging that advances in artificial intelligence were “too interesting to ignore.”

Separately, CoinDesk included market context, saying stablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B.

Taken together, the reporting places Paradigm’s $1.2 billion fund as a fresh capital pool for AI and robotics while the firm continues to invest in crypto infrastructure and related projects like Foundry and Reth.