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Crypto Funding Rises Even as Mega-Rounds Squeeze Out Startups

A lack of new fund closings has created a near-term gap for early-stage startups.

Overview

  • Messari data show total crypto fundraising up nearly 50% year over year while deal counts fell 46% and average check size jumped to $34 million, with active investors dropping to about 3,225.
  • February’s totals were skewed by three transactions—Tether’s $200 million into Whop, a $75 million Series B for Novig, and a $70 million Series B for ARQ—that together made up 44% of roughly $800 million raised.
  • Messari’s Eric Turner notes that few major crypto VCs have closed new funds recently, with Dragonfly’s $650 million vehicle a notable exception as a16z and Paradigm remain active but unclosed.
  • Analysts caution that headline gains are being powered by existing capital pools that are not being replenished at the same pace, raising the risk of thinner deployment for smaller rounds.
  • Full-year 2025 figures looked large at $50.6 billion, but nearly $22.1 billion came from M&A, while venture funding and deal counts declined on an annual basis.