Crypto VC giant Paradigm raises $1.2B, plans to bet beyond crypto. VC firm Paradigm has announced a $1.2 billion in funding to support "technical frontier" startups, expanding its focus beyond crypto. Table of contents. * Paradigm broadens investment strategy beyond crypto * VC firm confirms long term commitment to crypto * AI and crypto are converging Key highlights: * Paradigm is expanding its focus beyond crypto with a $1.2 billion funding * The investment aims to help startups focusing on AI, robotics, and other new technologies * The VC firm has reiterated its commitment to crypto and blockchain Paradigm, a leading crypto-focused venture capital firm, is now expanding beyond digital assets. The platform has reportedly raised a staggering $1.2 billion fund to invest in emerging technologies. Even though the company's core vision is rooted in crypto, it eyes backing startups in other areas, including artificial intelligence (AI), robotics, and more. The latest development underscores Paradigm's broader vision of diversifying its investment strategy. While maintaining a strong commitment to the crypto ecosystem, the platform envisions supporting the next generation of startups that drive innovation across other sectors. Paradigm broadens investment strategy beyond crypto. The latest reports reveal that venture capital giant Paradigm has announced a fresh $1.2 billion in funding to back "technical frontier" startups. This marks the platform's third venture fund and fourth fund overall. On Wednesday, Paradigm founder Matt Huang revealed this investment, which expands beyond the firm's traditional crypto focus. The company now intends to widen its approach beyond its crypto roots by investing in other major innovative sectors like AI, robotics, etc. The company wrote, "Our approach is to stay close to the metal-researching, building, and investing alongside founders, first in crypto, and now across AI, robotics, and other frontiers." Building on this statement, Paradigm's managing partner, Alana Palmedo noted, "$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. Grateful to our partners." VC firm confirms long term commitment to crypto. Paradigm's new funding is mainly focusing on sectors outside crypto. However, the firm has reiterated its commitment to the digital asset sector. Paradigm stated that it would continue supporting blockchain infrastructure, decentralized finance (DeFi), and other crypto-based projects. The platform also unveiled its existing crypto portfolio, which includes DEX Hyperliquid, prediction market platform Kalshi, and Stripe-backed stablecoin firm Tempo. In addition, the VC firm is also planning to strengthen its investments in blockchain-based research and developer tools. Some of these tools include Ethereum's Foundry and Reth, AI agent project Centaur, and OpenAI's EVMbench. As noted by Palmedo, the current expansion beyond crypto is mainly due to the rapid pace of innovation in other technologies. She stated, "There's so much else happening right now that's pretty hard to ignore." AI and crypto are converging. It is worth noting that Paradigm's latest move comes at a time when AI and crypto are increasingly converging. The lines between these two spaces are now blurring. This is because more crypto companies have started supporting and investing in AI-related projects. Crypto platforms are building infrastructure to allow AI companies to make payments, manage digital wallets, and do digital financing. For example, platforms like Coinbase and Stripe have already launched tools to support these financial activities involving AI projects. Paradigm stated, "This era favors those open-minded enough to throw out existing playbooks and recompute new views of reality frequently. It's a mindset we share with the founders we back." Paradigm's investment also reflects a broader shift in the venture capital space. As AI has grown significantly this year, many investors are rethinking their approach. They are looking beyond traditional blockchain projects. Thus, the VC firm's latest move is part of this larger trend.

Report: Paradigm raises $1.2 billion as AI funding outpaces crypto deals in 2026. Paradigm has closed a $1.2 billion fund built to chase artificial intelligence and robotics deals outside its crypto roots. Key takeaways. * Paradigm closed a $1.2 billion fund on Wednesday targeting AI and robotics. * Bloomberg's Rebecca Torrence reported the fund marks Paradigm's third venture vehicle. * Paradigm already backed Zipline and True Anomaly through the new frontier fund. Bloomberg's Rebecca Torrence reported the news on July 8, 2026, describing the vehicle as the venture firm's third fund. Matt Huang and Fred Ehrsam founded Paradigm in 2018. Huang previously worked as a partner at Sequoia Capital. Ehrsam co-founded Coinbase. Together they built one of the more technically involved firms in crypto investing, often working directly with founders on protocol design alongside writing checks. The new fund lands at a moment when capital is moving in two different directions. AI startups have pulled in the bulk of global venture dollars over the past year. Crypto deal counts have dropped sharply over the same stretch, with money concentrating in fewer, larger rounds. Paradigm manages roughly $12.7 billion across its funds. Its 2021 vehicle raised $2.5 billion, the largest crypto-focused fund at the time. A 2024 fund brought in $850 million for early-stage blockchain projects. Fund follows years of AI signals. Huang has talked about AI publicly since at least 2023, when Paradigm softened crypto-specific language on its website. He said then that the firm remained committed to crypto but found AI developments too interesting to ignore. Paradigm backed Nous Research, a decentralized AI infrastructure company, in a $50 million round in 2024 or 2025. In February 2026, the firm partnered with OpenAI to launch EVMbench, a benchmark that tests AI agents on finding and patching smart contract vulnerabilities. That February timing lines up with an earlier Wall Street Journal report that Paradigm was seeking up to $1.5 billion for a fund built around frontier technology. The $1.2 billion close lands close to that target. New fund already backs two companies. The Block reported that Paradigm has already deployed capital from the new vehicle into Zipline, a drone delivery company, through a Series H round in March 2026. The firm also joined a Series D round for True Anomaly, a space defense startup, in April 2026. Both investments sit outside crypto entirely. Zipline moves physical goods with autonomous aircraft. True Anomaly builds systems for tracking and defending orbital assets. Crypto deals continue alongside the pivot. Paradigm has not stepped away from crypto. The firm co-led a $175 million round in Morpho, a decentralized lending protocol, in June 2026. It led a seed round for M1X Global, a company building infrastructure for tokenized US Treasuries, in July 2026. The firm also holds positions in Kalshi and other prediction market and payments companies. What this means. Paradigm is using its existing technical team to evaluate AI and robotics deals rather than building a separate group for the work. That choice keeps the firm's crypto expertise in the room for adjacent bets, including AI-driven security tools and autonomous payment systems. For crypto investors watching capital flows, the move signals that even well-capitalized, crypto-native firms see limited room to deploy larger funds inside crypto alone right now. Paradigm has not issued a detailed public statement with limited partner names or deployment targets. Crypto Fear and greed index. Extreme Fear Yesterday Fear Last Week Extreme Fear Last Month Extreme Fear How do you feel about the market today?

Crypto VC firm Paradigm raised $1.2B, its third fund, to invest in areas outside of crypto, including AI and robotics; Paradigm had $11.9B in AUM in 2025 (Rebecca Torrence/Bloomberg). July 8, 2026 Discover more Technology News Featured podcasts. Machine Learning & Artificial Intelligence Media and tech aren't just intersecting - they're fully intertwined. To understand how those worlds work, Peter Kafka talks to industry leaders, upstarts and observers. Sequoia Capital partners host conversations with leading AI builders and researchers to develop a deeper understanding of the evolving technologies and their implications. The leading destination to learn about business and investing. Harmony Evans do this by showcasing exceptional talent and ideas. Engineering & Technology The Big Technology Podcast takes you behind the scenes in the tech world featuring interviews with plugged-in insiders and outside agitators. The future is already here. Each week, journalists Kevin Roose and Casey Newton explore and make sense of the latest in the rapidly changing world of tech. Machine Learning & Artificial Intelligence Microsoft Vice Chair and President Brad Smith speaks with leaders in government, business, and culture to explore the most critical challenges at the intersection of technology and society.