Crypto VC deals drop in Q1, but funding more than doubles: PitchBook
In Q1 2025, crypto venture capital deals totaled 405, a 39.5% decrease from 670 deals in Q1 2024, but an increase from 372 in Q4 2024. The total deal value surged to $6 billion, up from $2.6 billion in Q1 2024 and doubling from $3 billion in Q4 2024. Nearly $2.55 billion was invested in crypto asset managers, exchanges, and financial services across 16 deals, while crypto infrastructure firms received about $955 million across 30 deals. Circle's upcoming IPO is anticipated to influence venture capital perceptions and valuations in the sector. The market value of stablecoins rose 12% to $227.1 billion, highlighting their significance in dollar-denominated settlements. PitchBook predicts increased near-term investments in payment and treasury-management startups linked to stablecoin usage. The February Bybit exploit may drive demand for enhanced proof-of-reserve tools and custody solutions, creating a favorable funding environment for startups addressing these needs.
