Crypto -Venture Financing reached $ 4.9 billion in the first quarter of 2025, which marked a strong comeback for the industry, according to a May 1 report By Galaxy.
The total capital cited was 40% higher than the previous quarter and came from 446 deals, which also reflected a growth of 7% during the period. This makes the most active period for crypto fundraising in the first quarter since the end of 2022.
MGX’s investment of $ 2 billion in Binance made an important contribution to this figure, which was good for more than 40% of the capital cited. Exclusive this single deal is said to have been the financing of the first quarter at $ 2.8 billion, which reflects a 20% decrease compared to the fourth quarter of 2024.
Crypto investment per category
The Binance investment pushed the trade, exchange, loans and investment sector to the top of the financing diagram. This category attracted $ 2.55 billion, with a growth rate of 47.9%. If Binance is excluded, the Defi sector would have led the quarter with $ 763 million in capital inflow.
Web3-related projects were the highest number of deals. These include gaming, NFTs, DAOS and Metaverse initiatives, with 73 rounds that represent 16% of all transactions. Trade -related companies followed with 62 deals.
Galaxy also reported a shift in investor focus. For the first time since the first quarter of 2021, the majority of the capital, about 65%, went to later companies. Rounds at an early stage, mainly pre-seed deals, saw a slight dip but remained strong compared to earlier cycles.
American startups dominated the financing scene, accounting for 38.6% of the total number of deal. The UK came the following with 8.6%, while Singapore and the VAE followed with 6.4%and 4.4%respectively. The increase in American investments can be a reflection of the growing government support for digital assets.
Bitcoin -price correlation
The report noted a recovery in the correlation between the price movements of Bitcoin and venture investments. The trend, which had been weakened since the beginning of 2023, shows signs of strength over a multi -year horizon.
Galaxy also said that fundraising remains difficult despite the growth on an annual basis. Factors such as careful allocator sentiment and the continuing impact of the decline of 2022-2023 remain on the market.
Moreover, the rise of AI has moved the focus of investors away from crypto. The AI sector now has the level of attention that Crypto had in 2021 and early 2022. This is clear with the decrease in funds collected by crypto-oriented venture funds, which fell to $ 1.9 billion in the first quarter.
Despite these challenges, Galaxy remains optimistic and he notes that 2025 is already at pace to surpass the fundraising figures for the previous year.
