Crypto VC funding drops 22% in Q2 despite strong June finish

Venture superior backing directed towards crypto startups totaled $4.5 cardinal during the 2nd quarter, down 22% versus the erstwhile 3 months.

According to DefiLlama data, the breakdown of the 2nd 4th shows monthly flows of astir $1.29 cardinal successful April, $624 cardinal successful May, and $2.5 cardinal successful June. 

June’s fig is implicit 4x larger than May’s backing and ranked arsenic the second-largest period of 2025, trailing lone March’s $3.5 cardinal surge that was driven by Binance’s $2 cardinal MGX investment.

Despite the late-quarter rebound, the combined magnitude for the 2nd 4th could not lucifer the astir $6 cardinal invested successful crypto startups betwixt January and March.

Nevertheless, it is inactive treble the magnitude of task superior wealth flowing into crypto successful past year’s 2nd quarter.

Stand-out Q2 transactions

Large cheques remained selective successful the 2nd quarter. Twenty One Capital received $585 million, the largest backing circular of the erstwhile quarter.

Furthermore, Eigen Labs received $70 million from Andreessen Horowitz’s a16z, which purchased further EIGEN tokens.

Other important backing rounds from the 2nd 4th see Hypernative’s $40 cardinal circular and Symbiotic’s $29 million.

While the woody number slipped to multi-year lows successful May, astatine conscionable 62 rounds, the quarter’s median circular size remained supra $10 million, indicating that investors continued to money later-stage and infrastructure projects.

Sector premix and geographic notes

DeFi infrastructure, restaking, and AI-linked middleware captured the largest tickets, mirroring the nationalist market’s communicative rotation.

North American companies attracted the bulk of the raises past quarter, chiefly owed to larger Series B and aboriginal rounds of funding. At the aforesaid time, early-stage enactment successful Asia and the Middle East edged higher successful token-focused effect deals.

Despite the slower gait of backing registered successful the erstwhile quarter, the year-to-date full of astir $10.3 cardinal already exceeds the full-year fig of $9.6 cardinal for 2024.

The station Crypto VC backing drops 22% successful Q2 contempt beardown June finish appeared archetypal connected CryptoSlate.