Crypto VC Funding Surges to $4.65 Billion in Q3 2025 Amid Renewed Market Confidence
Venture capital investment in the crypto sector rebounded sharply in the third quarter of 2025, reaching $4.65 billion, according to a new report from Galaxy Digital. This marks the second-highest quarterly funding total since 2022, signalling that investor confidence is returning after a long period of market caution and reduced deal flow.
The report shows that crypto investors are shifting away from defensive positioning and toward selective, fundamentals-driven optimism, favouring startups with strong revenue models, robust technical architecture, and clear real-world utility.
A 290% Jump in Capital Deployment
Crypto VC funding saw a dramatic 290% quarter-over-quarter increase, reversing the slowdown experienced earlier in the year. Deal activity remained strong, with 415 deals closed in Q3.
However, Galaxy notes that just seven major deals accounted for nearly half of all capital invested during the quarter. These included:
- Revolut — $1 billion raise
- Kraken — $500 million round
- Major investments in Erebor, Treasury, Fnality, Mesh Connect, and ZeroHash
The outsized influence of these mega-rounds suggests that investors are concentrating capital in more mature, proven companies rather than spreading it across early-stage startups.
Later-Stage Companies Take the Lead
The report highlights a clear shift in investor appetite:
- 56% of funding went to later-stage companies
- 44% went to early-stage startups
- Pre-seed deal counts remained stable, indicating ongoing early innovation
This distribution signals a maturing crypto venture ecosystem, where investors are rewarding traction, sustainability, and revenue—not speculation.
Despite global macroeconomic pressures, the quarter saw strong valuations:
- Median deal size: $4.5 million
- Median pre-money valuation: $36 million
These figures approach the highs of the 2021 bull market, reflecting renewed conviction in the sector’s long-term potential.
Where the Capital Flowed: Categories and Regions
The trading, exchange, investing, and lending category dominated funding, pulling in over $2 billion, largely driven by the Revolut and Kraken raises.
Other high-growth sectors attracting significant venture interest include:
- Stablecoins
- Blockchain infrastructure
- Artificial intelligence
- Payments
- Tokenisation
While Web3, NFTs, and gaming still see deal activity, they are no longer the core focus they once were at the height of the last market cycle.
A Cautious but Confident Market Reawakening
Galaxy Digital’s analysis shows an industry entering a more mature phase, one grounded in real adoption, proven models, and enterprise-grade products. With investor confidence rising, valuations strengthening, and mega-deals leading the way, Q3 2025 may mark the beginning of a broader recovery cycle in crypto venture capital.
