Cryptocurrency funding has surged nearly 50% in the past year, despite a 46% drop in the number of deals. Venture capitalists are concentrating investments into late-stage and strategic mega-rounds.
The average deal size climbed to $34 million, a 272% increase from the previous year. This shift occurred as the number of active investors decreased by 34.5%.
Capital concentration is heavily influenced by late-stage and strategic mega-rounds. In February alone, just three fundraising events accounted for 44% of the total $795 million raised. Notable investments included Tether's $200 million into online marketplace Whop, Novig's $75 million Series B for its sports prediction market, and ARQ's $70 million Series B for its stablecoin-focused fintech app.
While late-stage activity dominates, early-stage fundraising remains high in volume but is fragmented, with rounds like Interstate's $1.5 million from over 15 participants.