Venture capital (VC) fundraising in the cryptocurrency sector is surging in October 2025, with $3.55 billion already raised in the first two weeks—putting the month on track to shatter previous records.
This pace aligns with historical patterns from the last bull cycle, where VC inflows peaked in November alongside rising asset prices. The momentum reflects renewed investor confidence in crypto infrastructure, DeFi, and AI-blockchain hybrids, building on a strong Q2 2025 where total crypto VC funding hit $10.03 billion, the highest since early 2022.
AI startups alone have captured a record $192.7 billion in global VC funding year-to-date, with crypto-adjacent projects like blockchain infrastructure and tokenization platforms drawing significant overlap. In Q3 2025, AI accounted for 40% of all VC exit value, fueling capital recycling back into new funds.
September 2025 saw crypto VC capital jump 739.7% year-over-year to $5.1 billion, despite a 37.4% drop in round count—indicating fewer but larger deals. Notable Q2 raises included TwentyOne Capital ($585 million) and Securitize ($400 million), setting a precedent for October’s activity.
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Global VC deal value is up ~30% year-over-year, driven by late-stage AI and crypto firms. However, overall VC fundraising remains sluggish outside these hotspots, with only $80 billion raised across 823 funds so far in 2025—far below 2022’s $412 billion across 4,430 funds.
European fundraising is at decade lows €6.9 billion across 87 funds YTD, and U.S. activity is stagnant due to liquidity shortages. Crypto’s outlier status could signal a sector rotation, with seed-stage deals 19.43% of tracked rounds leading the charge.
If prices follow the 2021 playbook, expect this fundraising frenzy to amplify through year-end, potentially spilling into traditional VC as exits such as the CoreWeave’s March IPO unlock more dry powder.
For founders, the window is narrow—focus on traction in AI/crypto intersections to capitalize. The influx of $3.55 billion in the first two weeks of October signals growing institutional confidence in crypto, particularly in infrastructure and AI-blockchain hybrids.
This could accelerate mainstream adoption of decentralized technologies. The 739.7% year-over-year surge in September 2025 crypto VC funding, despite fewer rounds, suggests VCs are prioritizing high-potential, late-stage startups
This could lead to a more consolidated, mature crypto ecosystem but may sideline smaller, early-stage projects. With AI startups capturing $192.7 billion globally in 2025, the overlap with blockchain via tokenization platforms, decentralized AI compute is driving cross-sector innovation.
Expect more startups blending AI and crypto to attract VC attention. High AI exit values 40% of Q3 2025 VC exits are freeing up capital, some of which is flowing into crypto funds. This creates a virtuous cycle for AI-crypto hybrids but risks overvaluation in hyped sectors.
Historically, VC inflows peak with crypto asset prices (e.g., November 2021). October’s pace suggests a potential price rally, but it also raises the risk of speculative bubbles, especially if retail FOMO follows.
Crypto’s outperformance contrasts with sluggish traditional VC fundraising $80 billion across 823 funds YTD, versus $412 billion in 2022. Capital may shift from underperforming sectors like traditional tech, European VC to crypto, amplifying its growth but starving other industries.
The focus on seed-stage deals 19.43% of rounds offers early-stage crypto startups a chance to secure funding, especially in AI-blockchain intersections. However, competition for mega-rounds will intensify, favoring teams with proven traction.
Rapid capital inflows risk inflating valuations, potentially leading to down rounds or failures if projects can’t deliver scalable solutions. While crypto thrives, broader VC markets are at historic lows. Crypto’s success could pull capital away from other regions or sectors, exacerbating funding droughts elsewhere.
Stagnant U.S. and European VC fundraising suggests limited dry powder. Crypto’s reliance on recycled AI exit capital may falter if exits slow, creating volatility in 2026. Surging crypto VC activity may draw stricter oversight, especially in jurisdictions wary of speculative investments.
Startups must navigate evolving compliance landscapes. Increased crypto wealth from exits or token appreciation could boost consumer spending and investment in adjacent tech sectors, but a bubble burst could trigger localized economic shocks.
Prioritize building in AI-crypto intersections, demonstrate traction, and target seed or late-stage rounds to ride the funding wave. Diversify within crypto infrastructure, DeFi to mitigate overvaluation risks, but monitor regulatory shifts closely.
For Policymakers: Balance fostering innovation with investor protections to avoid destabilizing bubbles. The current trajectory suggests a transformative moment for crypto, but its sustainability hinges on execution, regulatory clarity, and broader market stability.