Paradigm Raises $1.2B for Third Venture Fund
Crypto venture capital firm Paradigm has raised $1.2 billion for its third venture fund (Fund III) and fourth overall. The firm aims to invest in what it calls the ‘technical frontier,’ according to founder Matt Huang, who made the announcement on Wednesday, July 8, 2026. The fund size is slightly less than the amount the Wall Street Journal reported in February that the firm was seeking to raise.
Expanding Beyond Crypto into AI and Robotics
For Paradigm, the technical frontier extends beyond its cryptocurrency investment roots. This fund is expected to expand its investment focus to include robotics and artificial intelligence — a natural move given the booming AI market and crypto’s recent challenges. However, Paradigm is not abandoning crypto. In a blog post co-written by Huang and managing partner Alana Palmedo, the firm stated it will ‘continue investing in crypto and the reinvention of markets and the financial system.’ It will also ‘continue to research and build where it accelerates the industry, from blockchain tools (Foundry, Reth) to agent tools (Centaur) to security work (EVMbench, a collaboration with OpenAI).’
Palmedo told TechCrunch in an interview, ‘There’s so much else happening right now that’s pretty hard to ignore,’ underscoring the firm’s interest in AI and robotics.
Fund III Investments and Strategy
Paradigm’s Fund III has already made some investments, including in drone delivery company Zipline and space startup True Anomaly.
Background of Paradigm
The firm was founded in 2018 by Matt Huang, a former partner at Sequoia, and Fred Ehrsam, co-founder of the cryptocurrency exchange Coinbase. The fund’s target was reported earlier this year, and the final amount raised is slightly less than that initial target.
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