Paradigm raises $1.2 billion fund for AI, robotics and crypto

Paradigm raised a $1.2 billion Fund III to back what Matt Huang called the “technical frontier,” giving the San Francisco-based firm fresh capital for AI, robotics and other frontier technologies. The fund is Paradigm’s third venture vehicle and fourth overall.

Huang, who co-founded Paradigm in 2018 with Coinbase co-founder Fred Ehrsam, said the firm is still committed to crypto even as its mandate broadens. Paradigm is a frontier technology investment firm that builds and invests in crypto, AI, robotics and other new technologies from the earliest stages, often when an idea is still taking shape. Alana Palmedo, who co-leads the firm alongside Huang, also sits on the CFTC Innovation Advisory Committee.

In June 2024, Paradigm’s third fund was an $850 million venture fund focused on early-stage crypto projects, including open-source infrastructure and contributions to projects such as Uniswap, Optimism and Flashbots. Its 2021 venture fund was $2.5 billion.

Paradigm backed Zipline, the drone-delivery company that raised $600 million in January 2026 at a $7.6 billion valuation, and True Anomaly, the defense space startup that raised $650 million in April 2026 at a $2.2 billion valuation. In June 2026, Paradigm co-led Morpho’s $175 million round with a16z crypto and Ribbit Capital; Morpho said the deal was aimed at building an open credit network and that it had crossed $11 billion in deposits.

In 2025, AI companies raised $258.7 billion and accounted for more than 60% of all venture funding that year. Paradigm had been seeking up to $1.5 billion for a new frontier-tech fund earlier this year.