Crypto venture capital firm Paradigm has secured $1.2 billion — marking its third venture fund and fourth in total — as announced by founder Matt Huang on Wednesday.

For Paradigm, the technical frontier will go beyond its foundations in cryptocurrency investments. This fund aims to broaden its investment scope to incorporate robotics and AI. This shift isn’t unexpected given the booming AI market in recent years, while the crypto landscape has encountered difficulties.

According to a blog entry by Huang and managing partner Alana Palmedo, Paradigm is not entirely moving away from crypto. The firm plans to “keep investing in crypto and the reformation of markets and the financial system” and to “persist in researching and building where it propels the industry, from blockchain tools (Foundry, Reth) to agent tools (Centaur) to security projects (EVMbench, a collaboration with OpenAI),” they stated.

However, AI and robotics remain high on the priority list. In a conversation with Bloomberg, Palmedo remarked, “there’s so much else happening right now that’s pretty hard to ignore.”

Paradigm’s Fund III has already initiated several investments, including in drone delivery firm Zipline and space venture True Anomaly. 

Founded in 2018 by Huang, a former Sequoia partner, and Fred Ehrsam, a co-founder of the cryptocurrency exchange Coinbase, the firm submitted its filing to raise the fund earlier this year, as per SEC documents. The fund size is a bit less than the $1.5 billion that the Wall Street Journal reported the firm was aiming to raise in February.