Crypto venture capital deals in the first quarter of 2025 saw deal values jump even as the number of deals sank from the same quarter a year ago, says PitchBook.<\/p>\n
The venture research firm said in its May 14 Crypto VC Trends report for Q1 that 405 deals were made in the quarter, down 39.5% from the 670 deals made in Q1 2024, but slightly up from the 372 made in Q4 last year.<\/p>\n
However, the total value of deals in Q1 more than doubled from a year ago, jumping to $6 billion compared to $2.6 billion in the first quarter of 2024 and doubling from $3 billion in Q4 2024.<\/p>\n
PitchBook’s senior crypto research analyst Robert Le said that despite macroeconomic turmoil over the quarter, \u201ccapital continued to seek crypto\u2019s core utility rails.\u201d<\/p>\n
VCs poured nearly $2.55 billion across 16 deals into businesses like crypto asset managers<\/a>, exchanges, and financial services at a rate that far surpassed any other segment.<\/p>\n Crypto infrastructure and development firms saw the next largest venture funding, fetching nearly $955 million across 30 deals.<\/p>\n Web3-focused companies saw the third-most deals and funding, at 23 and $231.2 million, respectively. Source: PitchBook.<\/em><\/p>\n Looking ahead, PitchBook\u2019s Le said Circle\u2019s pending initial public offering<\/a> (IPO) \u201crepresents the most important price-discovery event for crypto equity since Coinbase listed in 2021.\u201d<\/p>\n If Circle is valued above the rumored $4 billion to $5 billion range, it could show venture investors that business models similar to Circle\u2019s are profitable and sustainable while also providing a clearer benchmark for future exits.<\/p>\n \u201cA strong roadshow could therefore crowd in new late-stage capital and reset valuation expectations upward across the payments and infrastructure stack.\u201d<\/p>\n Circle has raised $1.18 billion in VC funding to date, according to PitchBook, which estimates a 64% chance that it will go public in the future.<\/p>\n Le noted that the market value of stablecoins grew 12% over the first quarter, from $202.3 billion to $227.1 billion, even as other cryptocurrencies saw their values fall or stagnate.<\/p>\n \u201cIn our view, this divergence underscores a growing consensus: Dollar-denominated settlement remains crypto\u2019s killer application, insulated\u2014at least partially\u2014 from broader risk-off moves.\u201d<\/p>\n Le said PitchBook expected that near-term venture investments could increase, \u201cespecially in payment, remittance, and treasury-management startups that directly monetize stablecoin velocity.\u201d<\/p>\n Related: <\/strong><\/em>Bitcoin builders defend venture capital’s role in layer-2 growth<\/strong><\/em><\/a><\/p>\n Le added that the $1.4 billion Bybit exploit<\/a> in February \u2014 the largest in crypto history \u2014 may accelerate institutional demand for real-time proof-of-reserve tooling,<\/a> improved custody solutions and middleware that simplifies key management.<\/p>\n \u201cStartups addressing those vectors should find a more receptive funding environment despite the broader valuation reset,\u201d he added.<\/p>\n\u201cDollar-denominated settlement remains crypto\u2019s killer application\u201d<\/h2>\n