Paradigm Charts a New Course with $1.2 Billion Fund

The crypto VC firm is expanding its horizons, with a new fund set to invest in AI and robotics, areas that have seen immense growth over the past few years.

Paradigm, a well-known crypto VC firm, has raised $1.2 billion for its third venture fund, and fourth overall. The firm's founder, Matt Huang, announced the news on Wednesday, stating that the technical frontier for Paradigm will now stretch beyond its cryptocurrency investment roots.

The firm's managing partner, Alana Palmedo, explained in a blog post that Paradigm will continue to invest in crypto and related areas, such as blockchain tools and security work. However, the new fund will also prioritize investments in AI and robotics.

According to Palmedo, the firm has already made several investments in these areas, including in drone delivery company Zipline and space startup True Anomaly.

Paradigm was founded in 2018 by Huang, a former partner at Sequoia, and Fred Ehrsam, who co-founded the cryptocurrency exchange Coinbase. The firm filed to raise the fund earlier this year, according to SEC filings.

The fund size is slightly less than the $1.5 billion the firm was seeking to raise, as reported by the Wall Street Journal in February.

Key investments

• Drone delivery company Zipline
• Space startup True Anomaly

About Paradigm

Paradigm is a leading crypto VC firm that invests in the technical frontier. The firm was founded in 2018 by Matt Huang and Fred Ehrsam.

References

• Wall Street Journal: Paradigm seeks to raise $1.5 billion for new fund

• Bloomberg: Paradigm's Palmedo on the firm's investment priorities