- Paradigm is one of the largest crypto VC funds that has seemingly pivoted to AI.
- Paradigm co-founder Matt Huang explained how the firm currently sees crypto.
- Some observers criticized Huang for engaging in “lip service.”
The release of ChatGPT a few months ago changed a lot in the venture capital world. Multiple VC funds started focusing on artificial intelligence companies, seemingly abandoning crypto technology.
One such VC fund that seemingly pivoted to AI is Paradigm. On Tuesday, one of Paradigm’s co-founders explained on Twitter the current state of Paradigm and its focus.
Paradigm Co-Founder Tells VC Firm’s Humble Beginnings
Matt Huang, one of Paradigm’s co-founders, went to Twitter on Tuesday to explain how one of the best-known crypto funds is approaching its investment thesis.
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Huang started his Twitter thread by explaining how Paradigm came to be. He said that Paradigm had no “master plan” when it was started but only “deep conviction in crypto.”
“When Fred and I started Paradigm five years ago, there was no master plan. What we had was a shared curiosity for the future, deep conviction in crypto, and a desire to advance the frontier of what’s possible.”
Huang then said that Paradigm had been a “research-driven fund” since the beginning and is still one.
“Five years in, we’re still learning from the research-driven approach that we stumbled onto. Investing has made us better researchers, and research has made us better investors. We hire deeply curious people and push them to follow their instincts. What started as an experiment in 2019 has become core to who we are — “research-driven” — a change that is now reflected on our website.”
Huang Explains Paradigm’s View on Crypto
Huang then finally revealed what Paradigm currently thinks of investing in crypto. He said the fund has “never been more excited about crypto and we continue to invest across all stages.”
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At the same time, Paradigm is putting more focus on AI because the “developments in AI are too interesting to ignore.” However, the firm believes that crypto vs AI is not a “zero-sum competition.”
“It seems trendy to frame crypto vs AI as a zero-sum competition. But we don’t buy it. Both are interesting and will have plenty of overlap. We’re excited to continue exploring.”
Even without focusing its funds on crypto, Paradigm is still one of the most influential VCs in the industry. The firm continues to publish unique research papers, advocates for good crypto policy and builds open-source tools like Foundry or the recently-launched Ethereum client Reth.
On the Flipside
- Some observers pointed out that Paradigm’s official website has virtually no mentions of crypto.
Why This Matters
One of the biggest crypto funds confirming that it is still interested in crypto is a big win for the industry.
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