Crypto venture capital surged in the third quarter of 2025, reaching $4.65 billion, according to new data from Galaxy Digital. This marks the second-largest funding quarter since 2022 and signals a turning point after months of subdued investor appetite and declining deal activity.
The report outlines a shift toward measured optimism, with investors prioritising projects that demonstrate sustainable revenue, technical solidity, and clear market demand. The era of speculative hype is fading, giving way to a more disciplined and mature investment environment.
Capital Deployment Skyrockets 290% in One Quarter
Funding levels jumped 290% quarter-over-quarter, reversing earlier slowdowns. Deal flow remained robust, with 415 transactions completed in Q3.
Notably, Galaxy highlights that seven mega-rounds accounted for nearly half of all funding. These included:
- Revolut — $1 billion raise
- Kraken — $500 million round
- Significant capital injections into Erebor, Treasury, Fnality, Mesh Connect, and ZeroHash
This concentration of capital shows that investors are backing established, well-capitalised firms rather than spreading funds thinly across early-stage ventures.
Later-Stage Funding Dominates the Quarter
Investment distribution reveals a clear preference for companies with validated products and market traction:
- 56% of funding went to later-stage firms
- 44% supported early-stage startups
- Pre-seed deal numbers remained consistent, signalling continued early innovation
Valuations also strengthened despite macroeconomic uncertainty:
- Median deal size: $4.5 million
- Median pre-money valuation: $36 million
These metrics nearly match levels seen during the 2021 bull market, reflecting a noticeable rise in investor confidence, especially for companies with proven business models.
Top Sectors: Trading, AI, Infrastructure, and Stablecoins Lead the Pack
The largest share of funding, over $2 billion, went to the trading, exchange, investing, and lending category, boosted heavily by Revolut’s and Kraken’s record deals.
Other areas attracting substantial investment include:
- Stablecoins
- Blockchain infrastructure
- Artificial intelligence
- Tokenisation
- Payments
While sectors like Web3, NFTs, and gaming continue to attract interest, they no longer dominate the landscape as they did in previous cycles.
Crypto VC Landscape Enters a More Mature Phase
Galaxy Digital’s findings suggest that the market is transitioning into a more stable and strategically focused phase. With valuations strengthening, late-stage companies attracting major capital, and fundamentals-driven investments taking centre stage, Q3 2025 may represent the beginning of a sustained revival in crypto venture capital.
