Crypto VC funding surged in Q3, but a few late-stage rounds swallowed most of the money. New research from Galaxy Digital shows investors put $4.65 billion into 415 crypto and blockchain deals, a 290% jump from Q2. Yet seven transactions alone absorbed 48.7% of all capital.
Big checks, fewer winners
The largest raise went to Revolut, which secured a $1 billion round and saw its valuation climb to $75 billion. U.S. exchange Kraken drew $500 million at a $15 billion valuation, then added another $800 million later in the quarter, lifting its valuation to $20 billion.
Other sizable rounds included blockchain infrastructure platform Erebor, crypto treasury manager Treasury, tokenized payments network Fnality, banking-to-blockchain connector Mesh Connect, and custody provider ZeroHash. Together, these seven deals brought in more than $2.26 billion in Q3.
By the numbers
- $4.65B invested across 415 deals in Q3
- Up 290% from Q2, but still below 2021–2022 peaks
- Seven deals accounted for 48.7% of capital
- Later-stage rounds dominated activity
Why this tilt to late stage?
Galaxy Digital says the "golden era" of pre-seed crypto investing has likely passed. Pre-seed is the earliest money for brand-new projects, often before a product or revenue exists. The shift suggests investors want clearer traction, stronger compliance, and proven business models before writing large checks.
This pattern mirrors other tech cycles: when conditions tighten, capital funnels to market leaders and the core "picks-and-shovels" infrastructure that everyone uses.
Where the money is flowing
Recent winners handle the backbone of digital assets: exchanges, payments, custody, and middleware that connects banks and fintechs to blockchains. Examples include Fnality for tokenized payments, ZeroHash for custody, and Mesh Connect for linking financial institutions to crypto rails.
What founders should expect
- Longer fundraising timelines and more diligence on revenue and security
- Partnerships with established firms (banks, fintechs) carry extra weight
- Early rounds may be smaller; non-dilutive grants and ecosystem funds can help
- Clear regulatory posture and compliance readiness are now baseline
DeFi lending hits a record
In a separate Q3 update, Galaxy reported crypto lending reached a new all-time high, led by Decentralized Finance (DeFi) lending protocols. Strong lending volumes can point to growing on-chain activity and steadier fee streams for crypto businesses.
The bigger picture
Q3 shows risk appetite returning, but unevenly. Funding is rebounding, yet the center of gravity has moved to later-stage names and established platforms. Until exits improve and policy clarity expands, young teams will need to prove real user growth and revenue to stand out.
Source
All figures are from Galaxy Digital's Q3 venture capital review linked above.