Crypto VC Surges 84% in Q4 2025 with $8.5B Investment

The defining characteristic of the Q4 2025 rebound was the concentration of capital in a handful of colossal late-stage deals. Later-stage companies captured 56% of the total $8.5 billion invested, a proportion consistent with Q3, indicating a sustained focus on more established players. The scale becomes clear when examining the eleven individual deals that each raised over $100 million. This elite group, which included Revolut, Kraken, and Ripple, collectively accounted for a staggering $7.3 billion, or roughly 85% of the entire quarter’s investment.

The largest raises set the tone for the quarter. Fintech giant Revolut led the pack with a monumental $3 billion round, followed by Touareg Group at $1 billion and the cryptocurrency exchange Kraken at $800 million. Other significant transactions included Ripple and Tempo at $500 million each, Erebor at $350 million, and MegaHoot at $300 million. This parade of mega-deals pushed the median deal size to $4 million and median pre-money valuations to $70 million, though Galaxy Digital’s Alex Thorn noted that valuation data was available for only 10% of deals, skewing toward these larger, later-stage companies.

The powerful Q4 performance capped a year of significant recovery for crypto venture capital. Across the full year 2025, venture capitalists deployed a total of $20 billion into crypto and blockchain startups through 1,660 deals. This annual total more than doubled the investment seen in 2023 and stands as the largest since 2022, firmly reversing the downturn of the preceding ‘crypto winter.’ The data reveals a sector that is not just rebounding but maturing, with the share of later-stage deals steadily increasing.

Despite the focus on large rounds, entrepreneurial activity remained robust at the earliest stages. Pre-seed deals constituted a healthy 23% of total deal count in Q4, indicating a continued pipeline of innovation. In terms of sectors, the Trading/Exchange/Investing/Lending category reaffirmed its position as the dominant destination for capital, drawing over $5 billion for the year, led by the massive rounds for Revolut and Kraken. Sectors including stablecoins, artificial intelligence (AI), and blockchain infrastructure also attracted notable investment, pointing to a broadening of venture interest beyond core trading platforms.

The flow of capital remained heavily concentrated in a few key jurisdictions. Companies headquartered in the United States received the lion’s share, attracting 55% of all capital deployed in Q4. The United Kingdom was a distant but significant second at 33%, driven in part by the colossal Revolut raise. Singapore and Hong Kong followed with 2% and 1.7%, respectively. This geographic pattern was mirrored in deal counts, with 43% of deals involving US companies, 6% in the UK, and 4% in Hong Kong.

Parallel to the surge in startup investment, fundraising for crypto-focused venture capital funds itself saw a major revival. In Q4 alone, 11 funds raised $1.98 billion. This contributed to a full-year total of $8.75 billion raised for venture funds—the highest annual figure since 2022. The average fund size grew to $167 million, with a median of $46 million, providing these funds with substantial dry powder to continue deploying into the market in the coming quarters. This revival in fund formation underscores a reinforcing cycle of confidence, where capital begets more capital, setting the stage for sustained investment activity.