Paradigm Raises $1.2B Fund for AI, Crypto and Robotics

Fund follows earlier raise target

Paradigm had been raising up to $1.5 billion for a new fund under a broader investment strategy, according to an earlier February account of the fundraising process. The final reported size of the new vehicle is $1.2 billion, below that earlier target but still one of the larger recent venture commitments tied to the intersection of AI and crypto.

The new vehicle follows Paradigm’s original fund, launched in 2018 as an open-ended vehicle that invests in public and private crypto companies. Paradigm’s three other funds, including the newly raised vehicle, are venture-focused.

The fund’s dual focus on AI and crypto separates it from earlier crypto-cycle venture vehicles that mainly targeted DeFi protocols, layer-1 networks, exchange infrastructure and blockchain-native projects. The robotics component widens Paradigm’s investment scope further, allowing the firm to back companies that may not look like traditional crypto startups but share technical foundations with blockchain-adjacent sectors.

Paradigm’s mandate suggests the firm sees overlap in areas such as decentralized compute networks, AI-driven trading infrastructure, on-chain data tooling and other systems that connect machine intelligence with decentralized rails. The announcement did not disclose specific sectors, stages, target companies, check sizes, timing or geographic focus for the new fund.

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Paradigm points to broader portfolio

Paradigm said it backs founders at every stage, from early startups to more established companies. That scope means the new vehicle is not presented as limited to seed-stage bets, even though the exact allocation plan was not disclosed.

Paradigm highlighted several non-crypto investments to show how far its mandate already extends beyond digital assets. Those examples included Zipline, an autonomous drone delivery company; SendCutSend, a manufacturing platform; True Anomaly, a space defense startup; and Nous Research, an AI research company.

Paradigm also pointed to crypto and market infrastructure investments, including Hyperliquid, Tempo and Kalshi. Tempo is a stablecoin-focused blockchain project Paradigm co-founded with Stripe, while Kalshi is a prediction markets platform.

Paradigm has already been active in newer deals. M1X recently raised a $5.5 million seed round led by Paradigm, and Paradigm participated in Tempo’s $500 million funding round alongside Stripe.

Andreessen Horowitz previously raised a $2.2 billion fund for Web3 startups, a comparison that shows large venture firms have continued allocating significant capital to blockchain-adjacent opportunities despite market volatility.

Open-source work remains part of the strategy

Paradigm said it will continue contributing to open-source research and software, making its strategy broader than direct investments alone. The firm cited blockchain projects including Foundry and Reth as examples of its open-source software contributions.

Paradigm also cited AI-related tools including Centaur. The firm pointed to EVMbench, described as a security research project and collaboration with OpenAI, as another example of its research and software work.

The broader investment shift is not limited to Paradigm. Framework Ventures and Haun Ventures were also cited as crypto venture firms that recently broadened their investment mandates. Investors have pointed to a maturing crypto market, the rapid rise of AI and other technologies, larger funds searching for new opportunities, and growing overlap between blockchain and adjacent industries as reasons behind the shift.

Paradigm was founded in 2018 by Matt Huang, a former partner at Sequoia Capital, and Fred Ehrsam, the co-founder of Coinbase. The firm is described as one of the largest crypto venture firms, with nearly $12 billion in assets under management at the end of 2025.

Paradigm counts university endowments among its institutional investors. The new fund indicates continued institutional backing for digital assets and adjacent technology startups, but the announcement does not resolve how quickly the capital will be deployed or which companies will receive funding.