Crypto venture firm Paradigm has raised a $1.2 billion fund to invest in AI, robotics, crypto, and other technologies, broadening its focus beyond digital assets.
While crypto remains central to Paradigm’s business, the San Francisco-based firm said Wednesday its fourth fund will expand investments into AI, autonomous hardware, and other emerging technologies while continuing its research-driven approach.
“$1.2B to invest in steep exponentials. 8 years ago we were backed by people who believed in the crypto frontier,” Paradigm managing partner Alana Palmedo wrote on X. “Now we’re doubling down as frontiers are colliding across AI, crypto, space, deep tech, energy. Grateful to our partners.”
Founded in 2018 by Matt Huang and Coinbase co-founder Fred Ehrsam, Paradigm became one of crypto’s largest venture investors. The firm raised a $2.5 billion crypto fund in 2021, followed by an $850 million early-stage blockchain fund in 2024.
“Our approach is to stay close to the metal–researching, building, and investing alongside founders, first in crypto, and now across AI, robotics, and other frontiers,” the company said in a statement.
Other investments Paradigm noted included autonomous drone developer Zipline, space defense startup True Anomaly, and Nous Research, the AI company behind Hermes Agent.
On the crypto side, Paradigm pointed to investments in decentralized exchange Hyperliquid, prediction market platform Kalshi, and Tempo, a stablecoin-focused blockchain it co-founded with Stripe.
The firm also highlighted internal projects including Ethereum development tools Foundry and Reth, AI agent project Centaur, and EVMbench, a blockchain security benchmark developed with OpenAI.
The news comes as crypto companies are building more infrastructure for AI agents that can move money and complete transactions online. Companies including Coinbase and Stripe have developed payment tools aimed at letting AI agents use wallets, stablecoins, and other financial infrastructure to complete tasks with limited human involvement.
“Sufficiently steep exponentials are indistinguishable from magic, and we see more global-scale exponentials at work than ever before,” the firm said. “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. “
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