Crypto VC Firm Paradigm Raises $1.2B to Invest in Technical Frontier Startups
Paradigm has raised $1.2 billion for its third venture fund, expanding beyond crypto to include robotics and AI investments.
Crypto venture capital firm Paradigm has announced the closing of a $1.2 billion fund — its third venture fund and fourth overall — aimed at investing in the "technical frontier," according to founder Matt Huang on Wednesday. The fund will broaden the firm's focus beyond its cryptocurrency roots to include robotics and artificial intelligence.
In a blog post, Huang and managing partner Alana Palmedo explained that while the firm remains committed to crypto and the reinvention of markets and financial systems, it will also prioritize AI and robotics. They noted that Paradigm will continue research and development in blockchain tools (Foundry, Reth), agent tools (Centaur), and security work (EVMbench, in collaboration with OpenAI).
Palmedo told Bloomberg that "there's so much else happening right now that's pretty hard to ignore." Fund III has already made some investments, including in drone delivery company Zipline and space startup True Anomaly.
Founded in 2018 by Huang (a former Sequoia partner) and Fred Ehrsam (co-founder of Coinbase), Paradigm filed to raise the fund earlier this year, according to SEC filings. The fund size is slightly less than the $1.5 billion reported by the Wall Street Journal in February as the firm's target.
