Crypto VC Investment Doubled to $6B in Q1 per Pitchbook Outlook
In the first quarter of 2025, venture capital investment in crypto companies totaled $6 billion, doubling from the same period last year.
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Crypto companies attracted $6 billion in VC investments in Q1 2025, with Binance’s $2 billion raise from MGX and stablecoin growth setting the stage for recovery. Compared to $2.6 billion in funding from Q4 2024, crypto VC investments more than doubled, based on a report by PitchBook.
Meanwhile, there were 405 crypto venture deals in Q1 2025, a 39.5% decrease from the 670 deals made in Q1 2024. PitchBook notes that key market events, including rising stablecoin circulation, ByBit’s hack, and geopolitical trade tensions, had their reflection on the funding.
Capital was focused on utility applications, with a strong emphasis on security tools after the $1.4 billion hack of crypto exchange ByBit in February. Below are several key findings from PitchBook’s “Q1 2025 Crypto VC Trends”
Most Q1 Funding Went to Crypto Companies Providing User Access Tools
Crypto wallets, trading platforms, payment services, and other solutions that help people interact with the crypto ecosystem raised the highest amount of funding. Together, they raised over $2.5 billion across 16 deals.
Blockchain infrastructure and developer companies made up the second-largest category, raising around $955 million across 30 deals. Web3, DeFi, and blockchain networks followed.
Quarter-over-quarter analysis from Q4 2024 to Q1 2025 shows signs of improved investor confidence. The number of crypto deals rose by 8.9%, from 372 to 405, while total deal value doubled from $3.0 billion to $6.0 billion.
Crypto VC Exits Have Increased, with Acquisitions Leading Exit Strategies
The exit stage is when VC investors cash out from their crypto investments, often through acquisitions, public listings, or buyouts. In Q1 2025, acquisitions remained the most common exit strategy, followed by buyouts and public listings.
Exit values have dropped significantly since 2021, which was a record year in terms of value. This decline suggests smaller returns per exit or more conservative valuations.
In Q1 2025, there were 101 crypto VC exits valued at around $31 million.
Crypto Venture Capital Is Expected to Grow
PitchBook predicts that near-term venture capital will continue to increase in the industry, especially in payment, remittance, and treasury-management startups that directly monetize stablecoin velocity.
The upcoming Initial Public Offering (IPO) of Circle could be a turning point, reshaping the listing environment and encouraging additional capital inflows into crypto startups.
A strong roadshow could therefore crowd in new late-stage capital and reset valuation expectations upward across the payments and infrastructure stack.
– Pitchbook says.
Key findings in the report indicate that Q1 2025 was more about consolidation than collapse. While general market performance turned negative, key investor signals, such as stablecoin growth, safer infrastructure, and a solid pipeline of IPO-ready companies, remained strong.
According to PitchBook, current market conditions set the stage for projects focused on fundamentals.
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