The virtual currency funding environment has entered a new paradoxical phase. Although the number of venture capital firms leading funding rounds has fallen significantly from its pre-2022 peak, dollars raised have steadily recovered from their 2022 depths. 2022 was a time when major events shocked the market, and institutional investor-level supporters and participants aimed for the mountain.
Funding data seen by Tom Dunleavy, head of venture at Varys Capital, shows that the balance of power has tilted heavily towards crypto venture capital firms, where investors can now pick and choose the space, a stark contrast to the 2021-2022 period when companies had to aggressively court projects to accept their own funding rather than other offers.
However, despite the reduced activity levels, the deals being completed are now larger, and as Cryptopolitan has previously shown, companies that prove the viability of their business models are still making big bucks. reported.
Venture capital landscape moves forward from FOMO in 2022
John NahasPeople listed as Ava Labs’ chief business officer backed Dunleavy, pointing out that only 377 unique investors were involved in trades in the past quarter (roughly 90 days), compared to nearly 5,500. Participants throughout 2022.
This comparison compares 1/4 to 4, which indicates that the roster has shrunk several notches. Even in December, the weakest month of 2022, there were 361 unique investors, compared to 414 in previous 2026 data.
The biggest thing for Dunleavy is that “VCs can basically pick whatever deals they want,” compared to pre-2022, when they had to constantly “network/write/podcast/join spaces/” to convince projects to take the check.
Now, “most companies either don’t have money or are having difficulty raising money. Those that do have money are no longer funding dreams, but are reserving their support to fund Series A and other senior rounds where projects prove the viability of their product.”
Regarding that point, Pre-seed funding round It has steadily declined over the past three years, accounting for 8.55% of transactions, compared to just 6.61% in the past year.
Also, now that companies no longer have enough money to burn a hole in their pockets, they are under increased scrutiny. According to Dunleavy, because VCs are “spending more time on DD,” “deals that used to close in two to three weeks are now closing in two to three months.”
Why has the music stopped?
The high-profile sell-offs in FTX and Terra Luna in 2022 prompted a predictable overcorrection as market participants reassessed their risk profiles, prompting institutional and retail investors to exit, Exodus (NYSE:EXOD) CEO JP Richardson said. Pointed out by X Over the weekend.
Major supporters set aside funds for top performers.
With 2022 as an inflection point, cryptocurrency funding statistics endured weak years in 2023 and 2024 before making a comeback in 2025. In March 2025, companies raised $5.6 billion in 142 funding rounds, according to CryptoRank data. funding round The peak in 2025 was 145 rounds in February, while the peak of 100 rounds in 2026 was in March.
According to Cryptopolitan, Total funding in 2025 The amounts ranged from $40 billion to $50 billion, up from $9.33 billion to $13.5 billion in 2024.
research by galaxy digital check it Funds are now being directed to proven projects, with “a significant amount of capital flowing to larger, later-stage companies,” it said.
57% of capital invested in late-stage companies in 2025 was the highest on record, a trend that continues through 2026.
As a cryptopolitan reportedVC funding made a comeback in March, Led by Coinbase Ventures and Animoca Brands After a series of weak months since the beginning of the year. As expected, A significant portion of the activity was spent on late-stage projects in undisclosed rounds.
