A recent study on VC fundraising in the crypto sector reveals notable insights. The industry is experiencing significant consolidation, where fewer projects are attracting much larger investments.
Fields such as DeFi, AI, and blockchains are drawing substantial interest, while RWAs, DePIN, NFTs, and GameFi are losing traction. Aligning with the preferences of major players may be essential for attracting new investments.
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Crypto VC Fundraising Reviewed
A few months back, VC fundraising in the crypto arena was booming, driven by institutional investments that contributed $10 billion in inflows during Q2. However, the sector appears to have cooled off, as token launches have taken precedence over conventional VC methods.
A new report seeks to thoroughly analyze the data and pinpoint significant trends. Throughout September 2025, crypto VC fundraising rounds saw a significant decline in multiple areas. When compared to the previous month, the total number of rounds decreased by 25.3%, with a staggering 37.4% drop since September 2024.
In essence, the quantity of fundraising rounds is not only dropping; the decline is accelerating rapidly.
Nevertheless, this data may present a misleading picture. While the number of individual VC fundraising events in crypto has plummeted, the total amount of capital involved has dramatically increased. In terms of raw fundraising value, last month saw a 739.7% year-over-year rise.
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A Consolidating Market
Overall, this equates to approximately $5.1 billion in total VC fundraising for the crypto sector. As key firms prepare for major IPOs, these substantial rounds are growing in size while the total number decreases.
Last month, several individual fundraising rounds exceeded the total capital raised in September 2024:
In light of this trend, it is crucial to identify which sectors are receiving the most focus.
CeFi and DeFi have naturally emerged as the leading sectors, nearly accounting for half of the total investment capital. AI development and L1/L2 blockchains tied for third, with tools and wallets trailing closely behind.
Although the RWA market has benefitted from stock tokenization excitement, evidence indicates that VC fundraising is largely overlooking this crypto subsector. A recent report reveals these assets are considerably underperforming, capturing only a 6.5% market share last month when combined with DePIN.
In conclusion, major institutional investors like Goldman Sachs, Pantera Capital, and Galaxy Digital dominate this VC fundraising landscape, showcasing selectiveness in their crypto interests.
This consolidated environment may pose significant challenges for smaller projects, but it also presents real opportunities.
