Paradigm Closes $1.2 Billion Fund Aimed at Crypto, AI and Robotics Startups

Paradigm has secured $1.2 billion for its latest vehicle to back early-stage companies working in crypto, artificial intelligence, robotics and additional deep-tech fields.

Paradigm broadens its investment mandate while keeping crypto at its core. The San Francisco-based venture firm announced the vehicle on Wednesday and said it will target steep exponentials across AI, autonomous hardware and other frontiers. Paradigm reportedly remains committed to crypto as it explores areas where AI and blockchain overlap, maintaining its research-driven approach of staying close to the metal by researching, building and investing alongside founders.

The firm first focused on crypto when founded in 2018 by Matt Huang and Coinbase co-founder Fred Ehrsam. It previously raised a $2.5 billion crypto fund in 2021 and an $850 million early-stage blockchain fund in 2024.

The fund builds on Paradigm's existing portfolio across multiple sectors. Paradigm has backed companies including Nous Research, the AI company behind Hermes Agent, autonomous drone developer Zipline, and space defense startup True Anomaly. On the crypto side, its investments include decentralized exchange Hyperliquid, prediction market platform Kalshi, and Tempo, a stablecoin-focused blockchain it co-founded with Stripe.

Internal projects highlighted by the firm include Ethereum development tools Foundry and Reth, AI agent project Centaur, and EVMbench, a blockchain security benchmark developed with OpenAI. Bloomberg reports the $1.2 billion vehicle is Paradigm's third venture fund overall, while TechCrunch and The Defiant describe it as the fourth fund.

Managing partner highlights the collision of technological frontiers. Paradigm managing partner Alana Palmedo wrote on X that the firm is doubling down as frontiers collide across AI, crypto, space, deep tech and energy. “$1.2B to invest in steep exponentials. 8 years ago we were backed by people who believed in the crypto frontier,” she posted. “Now we’re doubling down as frontiers are colliding across AI, crypto, space, deep tech, energy. Grateful to our partners.”

The announcement arrives as crypto companies build infrastructure for AI agents that can move money and complete transactions online. Firms including Coinbase and Stripe have developed payment tools for AI agents to use wallets, stablecoins and other financial infrastructure with limited human involvement.

Paradigm frames the current era as one that rewards open-minded recomputation of reality. The firm stated that sufficiently steep exponentials are indistinguishable from magic and that more global-scale exponentials are at work than ever before. “This era favors those open-minded enough to throw out existing playbooks and recompute new views of reality frequently. It’s a mindset we share with the founders we back,” Paradigm said in its statement. No limited partner names or fund close date were disclosed.