In the last part of 2025, investment money for crypto and blockchain startups grew a lot. This money mostly came from venture capital firms. These are investors who put money into new companies that have the potential to grow very fast. The goal is to help the company become successful in exchange for a share of the business. If the company grows, the investors can earn a big return.
Galaxy Digital released a report about this rebound. The report was written by Alex Thorn, who leads the research team there. He found that in the fourth quarter (Q4) of 2025, venture capitalists put a total of $8.5 billion into 425 deals. This means two things: a big jump in the amount of money invested (84% more than in the previous quarter, Q3 2025) and a small rise in the number of deals (2.6% more than Q3). These numbers show a very strong quarter for crypto and blockchain investing. The jump was the biggest quarterly investment in this field since the second quarter of 2022. Still, the total money and number of deals in Q4 2025 are lower than the very high levels seen in 2021 and 2022.
Most of the money went to later-stage companies. Later-stage means firms that are closer to earning real money and profits, not just ideas. These companies got 56% of all the capital in Q4, while earlier-stage startups got 44%. This split stayed the same as in the previous quarter, showing that the market is maturing. In Q4, there were eleven deals that raised more than $100 million each. These eleven big deals added up to $7.3 billion, which is about 85% of the whole quarter’s total. The biggest single raises were Revolut with $3 billion, Touareg Group with $1 billion, and Kraken with $800 million. Other large deals included Ripple and Tempo, each with $500 million, Erebor with $350 million, MegaHoot with $300 million, Rain with $250 million, EXUGlobal and TradeAlgo with $120 million each, and RedotPay with $107 million.
Looking at the whole year of 2025, venture capitalists invested a total of $20 billion into crypto and blockchain startups through 1,660 deals. This was the largest yearly total since 2022 and more than twice the amount invested in 2023. The category that got the most attention was trading, exchanges, investing, and lending. This group alone received more than $5 billion, led by big rounds from Revolut and Kraken. Other areas also drew interest, including stablecoins (types of digital money designed to keep value), artificial intelligence (AI) projects, and infrastructure for blockchain technology.
Deal activity at the pre-seed stage remained healthy. Pre-seed deals, which fund very early ideas, made up about 23% of all deals. This shows that many entrepreneurs kept starting new companies. As the market matures, the share of deals at the later stage has grown. In Q4, the usual financing numbers were visible in the data. The middle value for how much money companies were being valued at before money was invested (pre-money valuation) rose to about $70 million. The middle size of a deal was about $4 million. It’s important to note that valuation data was available for only about 10% of deals, and this group tended to include bigger, later-stage companies.
Geography also shaped the picture. About 55% of capital went to companies based in the United States, 33% to the United Kingdom, 2% to Singapore, and 1.7% to Hong Kong. In terms of deals, the same pattern appeared: 43% of deals were for US-based companies, 6% for the UK, and 4% for Hong Kong. In addition, crypto-focused funds raised money during Q4. They collected about $1.98 billion across 11 funds in the quarter. For the whole year, these funds raised about $8.75 billion, the most since 2022. The average fund size rose to about $167 million, with a typical fund size (the median) of about $46 million.
Overall, the report shows that the crypto and blockchain investment market had a strong finish to 2025. It also shows signs of growing maturity, with more money going to later-stage companies and continued interest in a range of areas like trading, stablecoins, AI, and infrastructure. The information in this article comes from Galaxy Digital’s Q4 2025 Crypto VC Pulse report, written by Alex Thorn. The article first appeared on CryptoPotato.
What this means for people who want to understand crypto and blockchain investing is simple: big investors are putting more money into more established teams. This could help more real products and services come to market. But it also means that startups need to show they can grow and reach customers to win these big rounds. If you are curious about some of the technical words used here, you can read the quick definitions below.
Helpful definitions
- Venture capital (VC) is money from investors that goes into new companies with the hope that the company will grow a lot. The investors get a share of the company. This is a common way to fund early-stage technology businesses.
- Cryptocurrency is a digital money or asset that uses computer networks and special codes to secure transactions and control the creation of new units. There is no central authority like a bank that controls it.
- Blockchain is a system that records information on many computers in a way that makes it hard to change. It keeps a secure history of actions and is a foundation for many crypto projects.
- Revolut is a global financial technology company that offers digital banking services, including money in many currencies, cards, and cryptocurrency services.
- Kraken is a US-based exchange where people can buy and sell cryptocurrencies. It has offered banking-like services and has been a major player since 2011.
Sources: Galaxy Digital, CryptoPotato.