US-based companies captured 55% of Q4 crypto VC capital.
Cryptocurrency and blockchain venture capital saw a strong rally in Q4 2025, driven primarily by large late-stage deals. The Galaxy Digital report, authored by Alex Thorn, head of firm-wide research, found that venture capitalists deployed $8.5 billion across 425 deals in the quarter – an 84% increase in invested capital 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 Rise in Q4
Thorn reported that late-stage companies captured 56% of total invested capital, while earlier-stage startups accounted for the remaining 44%, a proportion unchanged from the previous quarter.
Eleven deals in the fourth quarter raised more than $100 million each, which together accounted for $7.3 billion, or about 85% of the quarterly total. The biggest increases included Revolut with $3 billion, Touareg Group with $1 billion, and Kraken with $800 million.
Other notable 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. Throughout 2025, venture capitalists invested a total of $20 billion in cryptocurrency and blockchain startups across 1,660 deals, making it the largest annual investment since 2022 and more than double the total from 2023.
The Trading/Exchange/Investment/Lending category remained the largest recipient of venture capital, attracting over $5 billion, led by Revolut and Kraken, while sectors such as stablecoins, artificial intelligence, and blockchain infrastructure also attracted notable investments.
The number of pre-seed deals remained healthy, at 23% of total deals, signifying ongoing business activity, while the proportion of later-stage deals has steadily increased as the sector has matured. During this quarter, average pre-money valuations rose to $70 million and average deal size reached $4 million. Valuation data existed for only 10% of deals, skewed toward larger and later-stage companies.
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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 pattern was also seen in the number of deals: 43% were completed by US companies, 6% in the UK and 4% in Hong Kong.
Fundraising for cryptocurrency-focused venture funds reached $1.98 billion across 11 funds in the fourth quarter, contributing to $8.75 billion raised for the full year, the most since 2022. The average fund size increased to $167 million, with a median of $46 million.
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