Venture capital investment in crypto and blockchain rebounded sharply in the fourth quarter of 2025, led primarily by large late-stage deals. According to a report by Galaxy Digital’s Alex Thorn, venture capitalists deployed $8.5 billion across 425 deals, representing an 84 percent increase in capital and a 2.6 percent rise in deal count compared with Q3 2025. This marked the strongest quarterly investment in the sector since Q2 2022, though deal volumes remain below 2021–2022 levels.
Late-Stage Deals Dominate
Later-stage startups captured 56 percent of total capital, while early-stage companies accounted for the remaining 44 percent. Eleven deals raised over $100 million each, collectively totaling $7.3 billion, or roughly 85 percent of the quarter’s funding. The largest raises included Revolut at $3 billion, Touareg Group at $1 billion, and Kraken at $800 million, followed by Ripple and Tempo at $500 million each.
Across 2025, crypto and blockchain startups received $20 billion in 1,660 deals, more than double 2023’s total and the highest annual investment since 2022. Trading, exchanges, investing, and lending remained the largest sector, drawing over $5 billion, while stablecoins, AI, and blockchain infrastructure also saw significant capital inflows.
Pre-seed deal activity remained strong at 23 percent of total deals, reflecting ongoing entrepreneurial activity, while later-stage investments continued to rise. Median pre-money valuations reached $70 million, with a median deal size of $4 million, though valuation data was available for only 10 percent of deals, skewed toward larger companies.
Global Distribution
US-headquartered companies captured 55 percent of capital, followed by the United Kingdom at 33 percent, Singapore at 2 percent, and Hong Kong at 1.7 percent. Deal counts followed a similar pattern, with 43 percent in the US, 6 percent in the UK, and 4 percent in Hong Kong.
Fundraising for crypto-focused venture funds reached $1.98 billion across 11 funds in Q4, contributing to a total of $8.75 billion raised for 2025, the largest annual total since 2022. Average fund size increased to $167 million, with a median of $46 million.
