Paradigm Secures $1.2B for AI and Emerging Tech Expansion

In brief

• The venture firm has launched its fourth fund, allocating $1.2 billion to technology startups spanning AI, robotics, and crypto.
• Notable investments include Nous Research, Zipline, True Anomaly, Hyperliquid, and Kalshi.
• Paradigm emphasized continued crypto focus while exploring intersections between AI and blockchain innovation.

Paradigm, a prominent crypto-focused venture capital firm, has raised a $1.2 billion fund to support technology startups across AI, robotics, and blockchain. This latest fund marks a strategic expansion of the company’s investment scope while maintaining its core commitment to digital asset innovation.

Founded in 2018 by Matt Huang and Coinbase co-founder Fred Ehrsam, the San Francisco-based firm previously raised $2.5 billion in 2021 and $850 million in 2024. The new fund will prioritize research-driven approaches to emerging technologies.

Managing partner Alana Palmedo highlighted the fund’s focus on “steep exponentials,” noting, “$1.2B to invest in steep exponentials. 8 years ago we were backed by people who believed in the crypto frontier. Now we’re doubling down as frontiers are colliding across AI, crypto, space, deep tech, energy.”

The firm’s portfolio includes autonomous drone developer Zipline, space defense startup True Anomaly, and Nous Research, creator of the Hermes Agent AI model. Crypto-focused ventures feature decentralized exchange Hyperliquid, prediction platform Kalshi, and Tempo, a stablecoin-oriented blockchain co-founded with Stripe.

Paradigm also supports internal initiatives such as Ethereum development tools Foundry and Reth, AI agent project Centaur, and EVMbench, a blockchain security benchmark developed with OpenAI.

This fund launch coincides with growing crypto infrastructure development for AI agents capable of executing online transactions. Companies like Coinbase and Stripe are advancing payment solutions enabling AI to leverage wallets, stablecoins, and financial systems with minimal human intervention.

“Sufficiently steep exponentials are indistinguishable from magic, and we see more global-scale exponentials at work than ever before,” the firm stated. “This era favors those open-minded enough to throw out existing playbooks and recompute new views of reality frequently.”

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