Surge in Crypto Venture Capital in Q4 2025: $8.5 Billion Invested in Later-Stage Startups

In a remarkable resurgence, crypto and blockchain venture capital experienced significant growth in Q4 2025, primarily fueled by substantial late-stage investments. A report from Galaxy Digital, authored by Alex Thorn, Head of Firmwide Research, revealed that venture capitalists allocated $8.5 billion across 425 deals during the quarter—an 84% increase in capital and a 2.6% rise in deal volume compared to Q3 2025. This marks the most robust quarterly investment in the sector since Q2 2022, although the number of deals remains well below the levels observed in 2021-2022. Later-stage companies secured 56% of the total capital invested, with early-stage startups receiving the remaining 44%, which remained consistent with the previous quarter. Notably, eleven deals surpassed $100 million each, collectively accounting for $7.3 billion, or approximately 85% of the quarterly total. The largest fundraising efforts included Revolut at $3 billion, followed by Touareg Group at $1 billion and Kraken at $800 million. Other significant transactions featured Ripple and Tempo at $500 million each, Erebor at $350 million, MegaHoot at $300 million, and several others. For the year 2025, venture capitalists invested a total of $20 billion into crypto and blockchain startups across 1,660 deals, marking the largest annual investment since 2022 and more than double the total from 2023. The Trading/Exchange/Investing/Lending sector attracted the most venture capital, exceeding $5 billion in investments, led by Revolut and Kraken, while areas such as stablecoins, AI, and blockchain infrastructure also saw notable inflows. Pre-seed financing maintained a healthy share, accounting for 23% of total deals, indicating a vibrant entrepreneurial landscape, while the share of later-stage deals has steadily grown as the sector evolves. In this quarter, median pre-money valuations increased to $70 million, with the median deal size reaching $4 million. Valuations were reported for just 10% of deals, primarily reflective of larger, later-stage firms. Geographically, 55% of the capital was directed towards US-based companies, followed by the UK at 33%, Singapore at 2%, and Hong Kong at 1.7%. A similar distribution was evident in deal counts, with 43% executed by US companies, 6% in the UK, and 4% in Hong Kong. Additionally, fundraising for crypto-centric venture funds totaled $1.98 billion across 11 funds in Q4, contributing to $8.75 billion raised throughout the year—the highest since 2022. The average size of these funds rose to $167 million, while the median reached $46 million.