Crypto VC Firm Paradigm Raises $1.2 Billion Fund to Invest in AI, Robotics and Crypto

TLDR

• Crypto VC firm Paradigm has raised $1.2 billion for its fourth fund
• The new fund expands beyond crypto into AI, robotics, and other frontier tech
• Paradigm has already invested in drone delivery firm Zipline and space defense startup True Anomaly
• Global venture funding hit a record $510 billion in the first half of 2026
• AI dominated VC flows, while crypto captured $10.8 billion in H1 2026

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Paradigm, one of crypto’s largest venture capital firms, has raised $1.2 billion for a new fund that will invest in artificial intelligence, robotics, and other emerging technologies alongside its existing crypto focus.

The firm announced the fund on Wednesday. It marks a shift in strategy for Paradigm, which has previously raised over $4 billion across three funds dedicated solely to crypto since its founding in 2018.

Expanding Beyond Crypto

Managing partner Alana Palmedo told Bloomberg that crypto remains a priority, but the firm sees too much happening elsewhere to stay narrow.

Co-founder Matt Huang first signaled interest in AI back in June 2023. He wrote on X that advances in AI were “too interesting to ignore” while stressing Paradigm remained committed to crypto. He also rejected the idea that the two sectors compete, saying he expected “plenty of overlap.”

Paradigm has already deployed capital from the new fund. Investments so far include Zipline International, an autonomous drone delivery company valued at $7.6 billion in January, and True Anomaly, a space defense startup that reached a $2.2 billion valuation in April.

The firm also cited investments in the AI company Nous Research, the robotic metal fabrication platform SendCutSend, and blockchain tools Foundry and Reth.

A Wider Trend in Crypto VC

Paradigm is not alone in this move. Framework Ventures raised $400 million last month for a fund covering crypto, AI, robotics, and energy. Haun Ventures raised $1 billion in May, also expanding into AI for the first time.

Global venture funding hit a record $510 billion in the first half of 2026, surpassing the $440 billion invested across all of last year, according to Crunchbase.

AI companies drove most of that growth. OpenAI and Anthropic alone accounted for more than 40% of all venture funding in the first six months of the year.

Crypto, by comparison, pulled in $10.8 billion in venture funding during the same period, according to Cryptorank. That is a small fraction of the overall market.

Paradigm still holds active crypto positions. The firm highlighted investments in Hyperliquid, a crypto perpetuals exchange, and Kalshi, a prediction markets platform.

The firm was founded by Matt Huang and Coinbase co-founder Fred Ehrsam. It launched a $2.5 billion crypto fund in 2021, then the largest dedicated crypto fund ever, before raising an $850 million fund for early-stage blockchain startups in 2024.

With its fourth fund, Paradigm says it will “continue to research and build where it accelerates” the crypto industry while actively pursuing deals in adjacent frontier sectors.

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