US-headquartered companies captured 55% of crypto VC capital in the fourth quarter.
Crypto and blockchain venture capital saw a sharp recovery in the fourth quarter of 2025, mainly driven by large late-stage deals. The Galaxy Digital report, authored by Alex Thorn, head of Firmwide Research, shows that venture capitalists deployed $8.5 billion across 425 deals this quarter – an 84% increase in capital invested and a 2.6% increase in the number of deals compared to the third quarter of 2025.
This represents the strongest quarterly investment in the sector since the second quarter of 2022, although the number of deals remains well below 2021-2022 levels.
Crypto VC Peak in Q4
Thorn reported that later-stage companies accounted for 56% of total invested capital, while earlier-stage startups accounted for the remaining 44%, a percentage unchanged from the previous quarter.
Eleven deals in the fourth quarter raised more than $100 million each, representing $7.3 billion, or about 85% of the quarter’s total. The biggest revenues included Revolut at $3 billion, Touareg Group at $1 billion and Kraken at $800 million.
Other prominent transactions included Ripple and Tempo for $500 million each, Erebor for $350 million, MegaHoot for $300 million, Rain for $250 million, EXUGlobal and TradeAlgo for $120 million each, and RedotPay for $107 million. In 2025, venture capitalists invested a total of $20 billion in crypto and blockchain startups through 1,660 deals, making this the largest annual investment since 2022 and more than double the 2023 total.
The Trading/Exchange/Investing/Lending category remained the largest recipient of venture capital as it attracted over $5 billion, led by Revolut and Kraken, while sectors such as stablecoins, AI and blockchain infrastructure also attracted notable investments.
The number of pre-seed deals has remained healthy at 23% of total deals, signifying continued entrepreneurial activity, while the share of late-stage deals has steadily increased as the sector matures. During the quarter, average pre-money valuations increased to $70 million, and average deal size was $4 million. Valuation data existed for only 10% of deals, which mainly focused on larger, later-stage companies.
You might also like:
Global crypto VC
Geographically, 55% of capital went to US-headquartered companies, followed by the UK with 33%, Singapore with 2% and Hong Kong with 1.7%. A similar pattern was also seen in the number of deals: 43% were completed by US companies, 6% in Britain and 4% in Hong Kong.
Fundraising for crypto-focused VCs reached $1.98 billion across eleven funds in the fourth quarter, adding to the $8.75 billion raised for the full year, the largest since 2022. Average fund size rose to $167 million, with a median of $46 million.
SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).
#Crypto #Explodes #Billion #Floods #LaterStage #Startups