According to Cointelegraph, venture capital funding for blockchain and cryptocurrency startups saw a significant increase in February, with decentralized finance (DeFi) projects attracting substantial investments. This trend indicates a strong demand for blockchain developers despite the volatile market conditions.
Data from The TIE reveals that 137 crypto companies collectively raised $1.11 billion in February. DeFi projects alone secured nearly $176 million across 20 initiatives. Additionally, eight business service providers garnered a total of $230.7 million. Startups focusing on security services, payments, and artificial intelligence also attracted considerable interest.
The largest investments in February were directed towards business service providers and DeFi projects. The TIE noted that major venture capital investors targeted multiple sectors, including AI, Developer Tools, DeFi, DePIN, Funds, and Payments. This aligns with Cointelegraph's recent reports of a surge in decentralized physical infrastructure network (DePIN) deals.
The TIE's data included crypto investment funds by examining US Securities and Exchange Commission Form D and Form D/A filings. Strix Leviathan led the funding rounds with $79.95 million, followed by Cambrian Asset Management with $20.43 million, and Galaxy Digital with $18.43 million.
February also witnessed six significant mergers and acquisitions, such as Forte's acquisition of Web3 privacy developer Sealance and Phantom's purchase of token data platform SimpleHash.
In 2025, the crypto markets have faced extreme volatility as U.S. President Donald Trump began his second term with unpredictable trade policies and tariff threats. Despite this short-term volatility, Trump's pro-crypto administration is anticipated to provide increased regulatory clarity for the crypto sector.
Positive regulatory developments are coinciding with a recovering business cycle and growing expectations that the US Federal Reserve will need to lower interest rates multiple times this year. Despite regulatory uncertainty, the US accounted for 36% of all crypto venture capital deals in 2024. Clear regulations under President Trump could act as a catalyst for more significant growth in 2025.
Lower interest rates and improving macroeconomic conditions are expected to benefit private capital markets. Harbour Invest, a Boston-based private equity firm, noted that "dealmaking confidence has started to return," a trend first observed in the final quarter of 2024.
In this context, crypto VC deals are projected to exceed $18 billion in 2025, according to PitchBook, marking a notable increase from the $13.6 billion raised in 2024.
Catherine
