VC Funding for Cryptocurrency Sector Falls 80% in Q1 2025: What's Happening?

The cryptocurrency market is experiencing significant shifts, and recent data reveals a dramatic downturn in venture capital investment. According to PitchBook data, global venture capital funding for crypto experienced an 80% plunge in the first quarter of 2025 compared to the previous year. This marks a substantial change in the investment landscape for crypto startups.

Venture capital investment in crypto firms continued to fall in the first quarter of 2025, signaling a cautious approach from investors. The cooling trend has led to a significant drop in funding rounds compared to the booming activity seen in previous years.

A Galaxy Research report states that the $2.4 billion invested by VCs throughout Q1 2025 represents a considerable decrease. Venture Capital (VC) investments into cryptocurrency firms continued to fall in Q1 of 2025, as only $2.4 billion was invested, highlighting the scale of the decline.

According to a report by Galaxy Research, venture capital (VC) investments into cryptocurrency firms continued to fall. This data underscores the overall sentiment that the crypto market is undergoing a period of recalibration, leading VCs to exercise greater selectivity in their investments.

Private funding for crypto startups in the first quarter of this year plunged to its lowest level since 2025, according to data from research firm PitchBook. Global VC funding numbers paint a clear picture of the current investment climate.

The reasons behind this 80% drop are multifaceted, including regulatory uncertainty, macroeconomic conditions, and a broader correction in the technology sector. This decline may impact the growth and innovation of emerging crypto projects, making securing funding a more competitive process.