Key Points:
- In the first quarter of 2025, crypto venture funding in the U.S. reached approximately $861 million, significantly overshadowed by nearly $20 billion in artificial intelligence funding.
- Notable AI investments include Databricks’ $15.3 billion round and Anthropic’s $2 billion raise, while the largest crypto deal was a $2 billion investment into Binance by Abu Dhabi’s MGX.
- Historical data shows a perennial preference for AI over crypto in venture capital, with AI funding increasing from $670 million in 2011 to $36 billion in 2020.
Crypto venture funding in the U.S. clocked in at approximately $861 million for the first three months of 2025, but was dwarfed by artificial intelligence’s nearly $20 billion haul, according to data provided by Pitchbook, showing how investors continue to show preference to AI.
Investment Insights
- Data reveals that investors closed 795 deals in the U.S. in AI from January to March, highlighting blockbuster investments like Databricks’ $15.3 billion round and Anthropic’s $2 billion raise.
- Crypto’s leading deal during this period was a $2 billion investment into Binance, marking the first institutional placement in the crypto space. Notable other investments included $82 million raised by Mesh and $70 million secured by Bitwise.
Trending Analysis
- Pitchbook previously noted that AI startups attracted one-third of global VC investments in 2024, aggregating to $131.5 billion, while crypto garnered only $4.9 billion across just 706 deals.
The Bigger Picture
Historically, data shows that VCs have consistently favored AI over crypto. In 2021, the only outlier year where crypto led, VCs invested $30 billion into the crypto market compared to $22.3 billion for AI.
Conclusion
This trend indicates a lingering investor inclination towards AI, despite crypto’s occasional surges. Furthermore, the sheer volume of funding in AI may redefine investment patterns for years to come.
