Q3 2025 crypto funding hits $4.6B, largest VC funding since FTX collapse

Funding remained below the 2021–2022 peaks and was skewed toward larger transactions. Seven deals accounted for about half of the quarter’s capital. Notable recipients included financial app Revolut ($1 billion), crypto exchange Kraken ($500 million), and U.S.-based crypto bank Erebor ($250 million). 

Revolut secured a €65 billion ($75 billion) valuation in a Nov. 24 secondary share sale that brought in Andreessen Horowitz, Franklin Templeton, and NVIDIA’s NVentures, while allowing employees to sell up to 20% of their holdings.

Other major investments went to Treasury ($146 million), Fnality ($135 million), Mesh Connect ($130 million), and ZeroHash ($104 million).

Companies founded in 2018 received the most capital, while startups launched in 2024 recorded the highest number of deals. The share of pre-seed rounds declined.

The United States led in both capital and deal count, attracting 47% of dollars and 40% of transactions. The United Kingdom accounted for 28% of capital and 6.8% of deals, while Singapore drew 3.8% of capital and 7.3% of deals.

Activity clustered around stablecoins, AI integrations, blockchain infrastructure, and trading. “Despite remaining below 2021–2022 bull market levels, venture activity remains active and healthy overall. Sectors like stablecoins, AI, blockchain infrastructure, and trading continue to draw deals and dollars,” Thorn wrote.

The report outlined a shift from prior cycles in 2017 and 2021, when venture flows closely tracked rising token prices. Over the past two years, VC allocations have been more muted even as market benchmarks recovered. The study cited waning interest in gaming, NFTs, and Web3, competition from AI startups for investor capital, and higher interest rates.

Spot exchange-traded products and digital asset treasury strategies are another factor. Large investors, including pension funds and hedge funds, have been allocating to spot Bitcoin products. “Some may be gaining exposure to the sector via these large, liquid vehicles rather than turning to early-stage VC investing,” Thorn noted.

Venture deployment slowed after FTX’s failure and bankruptcy. “Pre-seed deal count as a percentage has trended down consistently as the overall industry has matured,” Thorn wrote.