Crypto VC Paradigm targets AI and robotics with new $1.5B fund

What's the deal? Paradigm, one of crypto's biggest venture firms, is raising up to $1.5 billion for a new fund that will expand its mandate beyond crypto into AI, robotics, and other frontier tech.

The firm, founded in 2018, previously raised a $2.5 billion fund in 2021 and an $850 million fund in 2024. Its portfolio includes Coinbase and Kalshi, as well as the now-defunct FTX.

Why now? The move reflects a broader shift among crypto investors seeking growth opportunities as the crypto market cools. AI and robotics offer a natural adjacent bet — especially as the two worlds converge around use cases like AI agents using crypto for payments.

Paradigm co-founder Matt HuangDealroom has a profile for this one. Try Dealroom → also leads Tempo, a blockchain co-created with Stripe that counts OpenAI and AnthropicDealroom has a profile for this one. Try Dealroom → as partners — suggesting the firm already has a foot in the AI door.

What could go wrong? Paradigm has been here before. In 2023, it briefly scrubbed mentions of crypto from its website, triggering a backlash from the industry before reversing course. A pivot that looks opportunistic rather than conviction-driven risks the same reception — this time from both crypto loyalists and AI investors who may see it as a latecomer.

Frontier tech is also a crowded, competitive space with well-entrenched generalist VCs. Differentiating on deal flow and value-add will be harder outside crypto's tighter-knit ecosystem.

The signal: Paradigm's move is the latest sign that crypto-native capital is hunting for a broader mandate. As AI dominates the venture conversation, specialist funds risk looking narrow — and LPs are increasingly drawn to firms that can play across the frontier-tech stack. Expect more crypto VCs to follow suit.

Sources:
The Wall Street Journal
The Information
Venture Burn
Value The Markets
CryptoBriefing

Image credit: Paradigm Operations LP

J.V.