Paradigm raises $1.2B fund, expanding into AI and robotics
Original: Crypto VC firm Paradigm raises $1.2B to invest in ‘technical frontier’ startups
Why This Matters
A major crypto-native VC pivoting into AI and robotics signals broader convergence of deep-tech investment categories.
Crypto-focused VC firm Paradigm closed a $1.2 billion fund — its third venture fund and fourth overall — on July 8, 2026. Founded in 2018, the firm will expand its investment focus beyond crypto to include AI and robotics, while continuing to back blockchain projects.
Paradigm, the crypto-focused venture capital firm co-founded by Matt Huang and Fred Ehrsam in 2018, has raised $1.2 billion in its third venture fund (fourth fund overall). Huang announced the close on Wednesday. The fund falls slightly short of the $1.5 billion target reported by the Wall Street Journal in February.
While Paradigm will continue investing in crypto and financial infrastructure — including blockchain tools such as Foundry and Reth, agent tools like Centaur, and security research including EVMbench developed with OpenAI — the new fund explicitly expands the firm's mandate to include AI and robotics. Managing partner Alana Palmedo told Bloomberg, 'There's so much else happening right now that's pretty hard to ignore.'
Fund III has already deployed capital into drone delivery company Zipline and space startup True Anomaly. Huang previously served as a partner at Sequoia, while Ehrsam co-founded cryptocurrency exchange Coinbase. The fund was formally filed with the SEC earlier in 2026.