Crypto: Crypto Vc Funding Doubled In 2025 As Rwa Tokenization Took The Lead

Cointelegraph Research provides a data-driven report on crypto VCs, highlighting capital flows, sector rotation and changes in investor behavior.

Cointelegraph Research’s latest report provides an outlook on the state of fundraising in the crypto market and the key VC trends of 2025. VC investments in Web3 startups doubled in 2025 from the year before, driven by institutional interest, particularly in the RWA sector, which raised more than $2.5 billion. There has also been a distinct increase in mergers and acquisitions (M&A) and other large-scale corporate financing arrangements.

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In 2025, venture capital investment in crypto startups exceeded $8 billion in every quarter for the first time since 2022. Total funding in 2025 reached more than $34 billion, double the $17 billion recorded in 2024. Nevertheless, 2025 can still be considered a risk-off year, as investors favored bonds and safe-haven assets, such as precious metals, which posted exceptional performance that year, amid geopolitical uncertainty and elevated interest rates.

The reduced risk appetite of venture capital also changed perceptions of business models in crypto. In 2025, fund managers prioritized sustainable revenue models, organic user metrics and strong product market fit instead of projects with early traction and limited revenue visibility. This shift was corroborated by the move from pre-seed and seed rounds toward later financing stages. Seed-stage financing declined by 18%, while Series B funding increased by 90%. This indicates deeper investor involvement in projects and a stronger focus on ecosystem development rather than early-stage experimentation.

Download the full report to explore which startups and niches attracted most attention from VCs

RWA tokenization has shifted from a narrative into a budding sector over the past three years. According to RWA.xyz data, tokenized real-world assets have surpassed a capitalization of $38 billion, up 744% from $4.5 billion in 2022. RWAs have emerged as one of the fastest-growing segments in the crypto market, second only to stablecoins. Despite this growth, the crypto RWA sector remains small relative to $156 trillion in fixed-income and $146 trillion global equities markets. This suggests substantial room for further expansion.

From the investment side, the first signs of this shift are present in the progression of annual funding figures. In 2025, VC funding for R

Source: CoinTelegraph