Crypto and blockchain venture capital witnessed a sharp rebound in Q4 2025, driven predominantly by large late-stage deals. Galaxy Digital’s report, authored by Alex Thorn, Head of Firmwide Research, found that venture capitalists deployed $8.5 billion across 425 deals in the quarter – an 84% increase in capital invested and a 2.6% rise in deal count compared to Q3 2025.

This represents the strongest quarterly investment in the sector since Q2 2022, although deal counts remain well below 2021-2022 levels.

Crypto VC Surge in Q4

Thorn reported that later-stage companies captured 56% of total capital invested, while earlier-stage startups accounted for the remaining 44%, a proportion unchanged from the previous quarter.

Eleven deals in Q4 raised over $100 million each, collectively representing $7.3 billion, or roughly 85% of the quarterly total. The largest raises included Revolut at $3 billion, Touareg Group at $1 billion, and Kraken at $800 million.

Other prominent transactions included Ripple and Tempo at $500 million each, Erebor at $350 million, MegaHoot at $300 million, Rain at $250 million, EXUGlobal and TradeAlgo at $120 million each, and RedotPay at $107 million. Across 2025, venture capitalists invested a total of $20 billion into crypto and blockchain startups through 1,660 deals, making it the largest annual investment since 2022 and more than double 2023’s total.

The Trading/Exchange/Investing/Lending category remained the largest recipient of venture capital, as it drew over $5 billion, led by Revolut and Kraken, while sectors including stablecoins, AI, and blockchain infrastructure also attracted notable investment.

Pre-seed deal counts remained healthy at 23% of total deals, indicating continued entrepreneurial activity, while later-stage deal share has steadily increased as the sector matured. During this quarter, median pre-money valuations climbed to $70 million, and the median deal size reached $4 million. Valuation data existed for just 10% of deals, biased toward bigger, later-stage companies.

Global Crypto VC

Geographically, 55% of capital went to US-headquartered companies, followed by the United Kingdom at 33%, Singapore at 2%, and Hong Kong at 1.7%. A similar pattern was seen across deal counts as well, with 43% completed by US companies, 6% in the UK, and 4% in Hong Kong.

Fundraising for crypto-focused venture funds reached $1.98 billion across 11 funds in Q4, contributing to $8.75 billion raised for the full year, the largest since 2022. The average fund size rose to $167 million, with a median of $46 million.