Crypto VC Investment Reaches $4.65 Billion in Q3, Driven by Big Deals

TLDR

• Crypto VC investment reached $4.65 billion in Q3, marking a 290% increase from the previous quarter.
• Seven major deals accounted for half of the total capital raised during the third quarter.
• Revolut secured $1 billion, Kraken raised $500 million, and Erebor received $250 million in funding.
• Established companies from 2018 attracted the most capital, while newer firms saw the highest deal count.
• Pre-seed investments have declined as the crypto industry matures and finds market fit.

Crypto-focused venture capital investments surged to $4.65 billion in the third quarter of 2025, marking the second-highest level since the FTX collapse in late 2022. This represents a 290% increase from the previous quarter. Despite the rise, investment levels are still below the highs seen during the 2021-2022 bull market.

Small Number of Deals Capture Bulk of Funding

The third quarter saw 414 venture deals. However, seven deals accounted for half of the total capital raised. Notable investments included Revolut, which raised $1 billion, Kraken, which raised $500 million, and Erebor, a crypto-focused bank, which raised $250 million.

Established companies founded in 2018 were the primary recipients of funding, while those founded in 2024 accounted for the highest number of deals. As the industry matures, early-stage investments in pre-seed companies are becoming less frequent. Alex Thorn, head of research at Galaxy Digital, pointed out that the “golden era of pre-seed crypto venture investing has passed.”

Venture capital in the crypto space has been subdued in recent years. According to Thorn, sectors like gaming, NFTs, and Web3 no longer attract the same level of interest. Meanwhile, competition for investment capital from AI startups has intensified.

Furthermore, higher interest rates have made it harder for venture capitalists to allocate funds to crypto VC. The growth of spot exchange-traded products (ETPs) and digital asset treasury companies has drawn attention from institutional investors, diverting capital from early-stage investments.

Despite these challenges, Thorn believes that regulatory shifts could reignite investor interest in crypto VC. If laws such as the GENIUS Act gain traction, they could help create a more favorable environment for crypto ventures.

US Dominates Crypto VC Activity in Q3

The United States remained the leading destination for crypto VC investments, attracting 47% of the capital in Q3. The UK followed with 28%, while Singapore received just 3.8%. The US also led in deal volume, with 40% of all deals.

Thorn expects the US to maintain its dominance in the crypto VC landscape. He pointed to the potential passage of a crypto market structure bill as a factor that could further fuel this trend. This development could encourage more traditional financial firms to enter the crypto space.

The increase in US-based investments reflects ongoing interest in the sector, despite regulatory uncertainties. The US has historically attracted the most venture capital in the crypto industry. As more established companies enter the market, this trend will likely continue.

Crypto-focused venture capital activity remains active, albeit subdued compared to previous years. While competition from other sectors, such as AI, is growing, regulatory changes could help revitalize the crypto VC space in the future.

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