Venture capital in crypto remains subdued compared to past bull runs, with Q2 2025 marking one of the weakest quarters since late 2020.
VC investment in crypto startups totaled $1.97bn in Q2 2025 (-59% QoQ) across 378 deals (-15% QoQ).
Later-stage rounds captured 52% of all capital invested—only the second time since 2021 that late-stage has outpaced early-stage.
Mining led categories with $500m+ raised, including a $300m Sequoia-led round for XY Miners, driven by AI-related compute demand.
U.S. dominance returned, accounting for 47.8% of invested capital and 41.2% of all deals.
21 new crypto venture funds raised $1.76bn, but fund count remains near 5-year lows despite slightly larger average fund sizes.
Investor sentiment is improving, but deal activity is still far below 2021 peaks, with pre-seed activity trending lower as the industry matures.
