Paradigm Secures $1.2 Billion Fund to Back Crypto, AI and Frontier Technology Startups.

Crypto-focused venture capital firm Paradigm has announced the close of a $1.2 billion investment fund, marking its third venture fund and fourth fund overall. Founder Matt Huang revealed the new fund on Wednesday, saying it will focus on supporting startups operating at what the firm describes as the “technical frontier.”

While Paradigm has built its reputation through cryptocurrency investments, the latest fund signals a broader strategy that extends beyond digital assets. In addition to blockchain technologies, the firm plans to increase investments in artificial intelligence and robotics, reflecting the rapid growth of those sectors in recent years, even as the cryptocurrency market has experienced a more challenging period.

Despite the expanded investment strategy, Paradigm says it remains firmly committed to the crypto industry. In a blog post co-authored by Huang and managing partner Alana Palmedo, the firm stated that it will continue investing in cryptocurrency alongside efforts to reinvent financial markets and the broader financial system. The partners also said Paradigm will continue conducting research and building technologies that support the industry, including blockchain development tools such as Foundry and Reth, AI agent tools like Centaur, and security initiatives including EVMbench, a project developed in collaboration with OpenAI.

At the same time, artificial intelligence and robotics have become important priorities for the firm’s newest investment strategy. In an interview with Bloomberg, Palmedo explained that the pace of innovation across those industries has become impossible to overlook, noting that there is currently so much happening beyond cryptocurrency that it deserves attention.

Fund III has already begun deploying capital into several companies. Among its early investments are drone delivery startup Zipline and aerospace company True Anomaly, reflecting the firm’s broader interest in frontier technologies beyond blockchain.

Paradigm was established in 2018 by Matt Huang, formerly a partner at Sequoia, and Fred Ehrsam, co-founder of the cryptocurrency exchange Coinbase. Earlier this year, regulatory filings submitted to the U.S. Securities and Exchange Commission showed that the firm was in the process of raising the new fund. Although the final total reached $1.2 billion, it fell slightly short of the $1.5 billion fundraising target previously reported by The Wall Street Journal in February.