“Crypto was the first frontier for us, and it continues to be a really exciting one,” managing partner Alana Palmedo said, per the report. “But there’s so much else happening right now that’s pretty hard to ignore.”

The crypto market has been struggling, the report said. The price of Bitcoin is down nearly 30% this year. Meanwhile, venture funding in the AI sector made up 70% of startup investments worldwide during the second quarter of 2026.

Paradigm has already made numerous investments out of its new fund, including autonomous…