Crypto VC Funding Trends Continue Downward in 2025

The crypto venture funding slide isn't stopping. Q3 2025 showed real cooling in the investment world 📉. VC investments hit just $1.97 billion in Q2 - quite a drop.

Something weird's happening though 🤔. September brought a sudden jump to $5.1 billion, yet the number of actual fundraising rounds fell by 37.4% compared to last year. Big deals, fewer players. Established names seem to be grabbing most of the pie.

Early-stage companies get most of the money - about 85%. Investors like fresh blood. They're betting on tomorrow rather than today. Pre-money valuations sit around $23 million. Deal sizes average $3.5 million. Kind of surprising how stable these numbers remain given all the market chaos.

Some sectors are getting hot 🔥. Lending and trading infrastructure pulled in over $460 million. Layer 1 projects weren't far behind with $440 million. Web3/Metaverse got around $360 million. Infrastructure projects secured $340 million.

Crypto-AI hybrids? They're exploding 🚀. Funding jumped five times compared to last quarter. $270 million. People really believe in this blockchain-AI mashup, it seems.

America still rules. US investors provide 56% of all capital, handle 44% of deals. UK comes second with 11% of capital. Singapore contributes 7% of funding, accounts for 8.7% of deals.

It's tough out there. Only $140 million raised across eight new funds. 2025 looks to be the weakest year since 2020 for crypto VC fundraising. Just 39 new funds with $1.95 billion total. Not even close to 2021-2022 when we saw around $30 billion yearly.

High interest rates hurt. Spot ETF products changed the game. The 2022 crash still haunts us 🌘. Big capital pools for new funds? Hard to come by. Yet the ETF market surge has surviving VCs fighting harder for deals. Entrepreneurs might get better terms. Not entirely clear how this plays out.

Total funding might beat 2023 numbers slightly. Still, we're nowhere near the mountain peaks of past years 🏔️.