Paradigm Raises $1.2B for Crypto, AI, Robotics Bets

Paradigm raised $1.2 billion for a new fund that will invest in cryptocurrency, AI and robotics, the venture firm said Wednesday. The fund is smaller than the $2.5 billion Paradigm raised in 2021, when crypto venture capital was at a peak.

SkyBridge Capital founder Anthony Scaramucci congratulated Paradigm co-founder Matt Huang on the launch. "Awesome. Congratulations, Matt," Scaramucci wrote on X, replying to Huang's announcement.

The San Francisco-based firm said it would back the "most ambitious builders" and continue to research and build where it "accelerates the industry," Huang said. Paradigm has $12.7 billion in assets under management, according to recent regulatory filings.

Paradigm's portfolio includes Coinbase (COIN), the largest U.S. crypto exchange, as well as Hyperliquid and Kalshi, a prediction market. The firm was founded by Huang, a former Sequoia Capital partner, and Fred Ehrsam, a Coinbase co-founder.

The new fund arrives at a time when crypto-focused venture firms are struggling to raise capital, according to industry reports. Paradigm's ability to secure $1.2 billion suggests limited partners are more willing to back firms that diversify beyond digital assets.

For traders, the fund's size and scope signal where institutional money is flowing. Coinbase's stock, now trading under COIN, may see indirect support from Paradigm's continued backing. The real shift is the broadening of the "technical frontier" thesis beyond crypto alone.

Huang said the firm will continue to research and build where it "accelerates the industry." The fund's first investments have not been disclosed.