US-based companies captured 55% of Q4 crypto VC capital.
Crypto and blockchain venture capital saw a sharp rebound in the fourth quarter of 2025, driven primarily by large late-stage deals. The Galaxy Digital report, authored by Alex Thorn, head of Firmwide Research, reveals that venture capitalists deployed $8.5 billion across 425 deals during the quarter, an 84% increase in capital invested and a 2.6% increase in deal count compared to the third quarter of 2025.
This is the largest quarterly investment in the sector since the second quarter of 2022, although the number of transactions remains well below 2021-2022 levels.
Crypto VC Increase in Q4
Thorn reported that early-stage companies captured 56% of total capital invested, while early-stage startups accounted for the remaining 44%, unchanged from the previous quarter.
Eleven deals in the fourth quarter raised more than $100 million each, collectively representing $7.3 billion, or approximately 85% of the quarterly total. The largest increases were for Revolut at $3 billion, Touareg Group at $1 billion and Kraken at $800 million.
Other large transactions include 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. In 2025, venture capitalists invested a total of $20 billion in crypto and blockchain startups across 1,660 deals, making it the largest annual investment since 2022 and more than double the 2023 total.
The Trading/Exchange/Investment/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 good at 23% of total deals, signifying continued entrepreneurial activity, while the share of later-stage deals has increased steadily as the sector has matured. During this quarter, median pre-equity valuations climbed to $70 million, and the median deal size reached $4 million. Valuation data only existed for 10% of transactions, and was oriented towards large companies in the development phase.
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Global Crypto-VC
Geographically, 55% of the capital went to US-based companies, followed by the UK at 33%, Singapore at 2% and Hong Kong at 1.7%. A similar trend was also observed for the number of transactions, with 43% carried out by US companies, 6% in the UK and 4% in Hong Kong.
Fundraising for crypto-focused venture capital funds reached $1.98 billion across 11 funds in the fourth quarter, contributing to $8.75 billion raised for the full year, the largest since 2022. The average fund size reached $167 million, with a median of $46 million.
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