Despite the market volatility, ongoing regulatory challenges, and uncertainty in the crypto space, investors are still betting big on crypto startups, proving their interest in Web3 innovation remains strong.
According to data presented by CryptoPresales.com, crypto companies and startups raised $3.8 billion so far this year, or 25% more than in Q1 2024.
The Third-Highest Q1 Funding in the Market’s History
After a fantastic January that saw all major cryptocurrencies rally, February brought a wave of volatility, with many digital assets struggling to hold onto last year’s gains. All top cryptocurrencies suffered a double-digit price drop, and the negative trend continued in March. Despite these fluctuations, venture capital funding in the crypto space kept climbing, carrying strong momentum from 2024.
According to Crunchbase data, VC investors injected over $13 billion into crypto startups last year, turning 2024 into one of the top three years for crypto funding behind 2021 and 2022. This marked a stunning recovery from 2023’s downturn when investments plunged to just $5.6 billion. Investor activity was especially strong in Q4, with $5.2 billion raised, the second-highest quarterly figure since mid-2022. Q3 and Q2 also saw solid numbers, with $3.6 billion and $2.9 billion raised, respectively.
Venture capital inflows into crypto startups remained robust in the first months of 2025. The Crunchbase data show crypto companies raised another $3.8 billion year-to-date, or 25% more than in Q1 2024. Moreover, this is the third-best start to a year in the crypto market’s history, trailing Q1 2021 ($7.3 billion) and Q1 2022 ($7.6 billion). With $3.8 billion raised two weeks before the quarter’s end, the cumulative funding total now stands at $87.6 billion, nearly $15 billion more than in the same period last year.
More Money, Fewer Deals
The Crunchbase data also revealed one interesting trend- while the amount of money raised in funding rounds remains high, the number of deals is falling. In fact, statistics show deal-making has been shrinking for three straight quarters.
In Q1 2024, crypto companies and startups saw 337 funding deals, a significant increase from 209 reported in the same quarter a year before. By Q2, deal-making peaked at 343, the highest since mid-2022. But after that, the numbers started declining.
After falling to 281 in Q3, the number of deals slumped to 199 in the year’s final quarter, and the trend continued in 2025. Statistics show crypto companies and startups saw 159 deals year-to-date, less than half the figure reported in the same quarter a year ago.
These numbers show that crypto companies are securing bigger investments through fewer rounds. Also, investors seem to be focusing on backing larger, more established projects rather than spreading funds across many smaller ones.
