Key Takeaways
- • Paradigm closed a $1.2 billion fourth fund, its newest venture vehicle, to invest across AI, robotics, autonomous hardware, crypto, and other emerging technologies, according to the firm's announcement and multiple outlets reporting on July 8-9, 2026.
- • The fund came in below the $1.5 billion target the Wall Street Journal reported in February, indicating a smaller close than initially sought.
- • Paradigm, founded in 2018 by Matt Huang and Fred Ehrsam, previously raised a $2.5 billion crypto fund in 2021 and an $850 million early-stage blockchain fund in 2024, marking a strategic broadening beyond digital assets.
- • Portfolio examples cited by the firm include Zipline, True Anomaly, Nous Research, Hyperliquid, Kalshi, and the stablecoin blockchain Tempo, which it co-founded with Stripe.
Summary
Paradigm has raised a $1.2 billion fourth fund to invest in artificial intelligence, robotics, crypto, and other technologies, expanding the scope of a firm originally built to back cryptocurrency companies. According to the firm's announcement, which was reported on Wednesday, July 8, the fund will extend investments into AI, autonomous hardware, and other emerging technologies while maintaining the firm's research-driven approach. Managing partner Alana Palmedo wrote on X that the firm is "doubling down as frontiers are colliding across AI, crypto, space, deep tech, energy."
The fund size came in below the $1.5 billion target that the Wall Street Journal reported in February. Coverage describes the raise as one of the larger venture closes of the year, and some outlets frame the decision as following a surge in AI startup funding alongside a slump in crypto-related activity.
Paradigm was founded in 2018 by Matt Huang and Coinbase co-founder Fred Ehrsam and became one of the largest venture investors in crypto. It raised a $2.5 billion crypto fund in 2021 and an $850 million early-stage blockchain fund in 2024. The firm says crypto remains central to its business, but the new vehicle reflects a broader mandate.
The firm highlighted several portfolio companies in its announcement. AI and frontier-technology holdings include autonomous drone developer Zipline, space defense startup True Anomaly, and Nous Research. Crypto holdings include decentralized exchange Hyperliquid, prediction market Kalshi, and Tempo, a stablecoin-focused blockchain co-founded with Stripe. Internal projects cited include the Ethereum development tools Foundry and Reth, the AI agent project Centaur, and EVMbench, a blockchain security benchmark developed with OpenAI.
The announcement also reflects a broader trend in which crypto firms are building payment infrastructure for AI agents. Coinbase and Stripe have developed tools that allow AI agents to use wallets and stablecoins to complete transactions with limited human involvement.
The fund size came in below the $1.5 billion target that the Wall Street Journal reported in February. Coverage describes the raise as one of the larger venture closes of the year, and some outlets frame the decision as following a surge in AI startup funding alongside a slump in crypto-related activity.
Paradigm was founded in 2018 by Matt Huang and Coinbase co-founder Fred Ehrsam and became one of the largest venture investors in crypto. It raised a $2.5 billion crypto fund in 2021 and an $850 million early-stage blockchain fund in 2024. The firm says crypto remains central to its business, but the new vehicle reflects a broader mandate.
The firm highlighted several portfolio companies in its announcement. AI and frontier-technology holdings include autonomous drone developer Zipline, space defense startup True Anomaly, and Nous Research. Crypto holdings include decentralized exchange Hyperliquid, prediction market Kalshi, and Tempo, a stablecoin-focused blockchain co-founded with Stripe. Internal projects cited include the Ethereum development tools Foundry and Reth, the AI agent project Centaur, and EVMbench, a blockchain security benchmark developed with OpenAI.
The announcement also reflects a broader trend in which crypto firms are building payment infrastructure for AI agents. Coinbase and Stripe have developed tools that allow AI agents to use wallets and stablecoins to complete transactions with limited human involvement.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.