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Crypto venture funding experienced a dramatic 59% quarterly decline to $1.98 billion in Q2 2025, marking the second-smallest investment quarter since late 2020. Mining companies surprisingly captured the largest sector allocation while later-stage deals dominated funding for only the second time since 2021. The data reveals a decoupling between Bitcoin’s price performance and venture activity, signaling fundamental shifts in investor priorities.
- Mining companies received largest sector allocation (20% of total capital) for first time in years, driven by AI compute demand
- US-based companies maintained dominance with 47.8% of capital despite regulatory challenges, while UK ranked second with 22.9%
- Historical correlation between Bitcoin prices and venture activity has weakened significantly over past two years despite BTC's strong performance
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