Paradigm’s Q1 2023 Investments Revealed: Diving into Crypto and AI Projects

Paradigm, recognized as the leading venture capital firm in the cryptocurrency industry, has made significant strides in expanding its investment portfolio. Known for its exclusive approach to selecting projects, Paradigm has recently diversified its focus to include not only cryptocurrency but also artificial intelligence (AI).

In this article, we will delve into the major projects that Paradigm invested in during the first quarter of this year, as shared by influential figure Surf (@0xsurferboy) on Twitter. The move to embrace AI demonstrates Paradigm’s commitment to exploring emerging technologies and further solidifies its position as a pioneering force in the investment landscape.

Paradigm’s Investment Landscape: Founded in 2018 and headquartered in San Francisco, Paradigm has become synonymous with venture capital investments in the crypto sector. With approximately $13.2 billion in assets under management (AUM), Paradigm focuses on crypto as its primary investment domain, while also making forays into AI and emerging technologies.

Cryptocurrency Investments: Paradigm’s notable cryptocurrency investments include projects such as Optimism, Blur, and Synthetix. These strategic investments have contributed to the firm’s success and garnered attention within the industry. Among its largest holdings are Ethereum (ETH) valued at $187.9 million and Lido (LDO) with an investment of $154 million.

Venturing into AI: Paradigm’s recent shift in focus toward emerging technologies has opened up new opportunities in the field of artificial intelligence. By incorporating AI into its investment strategy, Paradigm aims to tap into the potential of this rapidly evolving sector. The move aligns with the footsteps of renowned venture capital firm Andreessen Horowitz (A16z), which has ramped up its AI investments in recent years.

Major Investments in Q1 2023:

  1. Conduit: Paradigm led a $7 million seed round investment in Conduit. The project aims to provide a rollup-as-a-service solution, enabling teams to scale decentralized applications (dApps) quickly. By offering a production-grade rollup built on OP, Conduit seeks to provide accessible and cost-effective options for projects requiring dedicated rollups.
  2. Ulvetanna: In a seed round, Paradigm, alongside Bain Capital Crypto, led a $15 million investment in Ulvetanna. The firm specializes in building hardware infrastructure for accelerating the process of generating zero-knowledge proofs (ZKPs). Focusing on generating ZKPs for Layer 2 ZK EVM networks, Ulvetanna contributes to enhancing the scalability and privacy of blockchain technologies.
  3. code4rena: Paradigm made a $6 million investment in code4rena through token purchase funding. Code4rena offers a transparent and gamified alternative to traditional audits. The platform incentivizes independent auditors to discover and report bugs in a competition format, thus promoting greater security and reliability in blockchain projects.
  4. nxyz (Q4 2022): Paradigm led a $40 million investment in nxyz, with participation from Coinbase Ventures, Greylock Partners, and other prominent investors. nxyz provides a multi-chain indexing product suite that exposes real-time blockchain data through low-latency APIs. This infrastructure empowers developers to build more efficient applications and services on the blockchain.
  5. Exponential (Q4 2022): Paradigm, along with Haun Ventures, Solana Ventures, Polygon Ventures, and Circle Ventures, invested $14 million in Exponential. The project functions as a DeFi investment discovery and risk assessment platform. It evaluates investment risks based on code analysis, team experience, and market conditions, providing users with a rating system for DeFi investments.

AI-related Paradigm Portfolio Companies

In addition to its recent foray into AI investments, Paradigm already has notable holdings in the AI sector. These include ArenaX Labs, the parent company of AI Arena, a digital platform where users can engage in ETH-based games with NFT characters powered by AI. Numerai, a hedge fund leveraging machine learning for trading strategies, is another significant AI-related project in Paradigm’s portfolio.


Paradigm, known for its exclusive and selective approach to venture capital investments, is expanding its investment focus beyond cryptocurrency to include artificial intelligence. By venturing into AI, Paradigm demonstrates its commitment to exploring emerging technologies and diversifying its portfolio. The firm’s investments in Conduit, Ulvetanna, code4rena, nxyz, and Exponential highlight its continued support for innovative projects within the crypto and AI sectors. With a strong presence in both domains, Paradigm solidifies its position as a leading venture capital firm at the forefront of technological advancements in the investment landscape.

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