PitchBook analyst Robert Le expects crypto VC funding to be “much, much stronger” in 2025 compared to 2024.
“We will see $18 billion or more in venture capital invested in cryptocurrencies,” Le told CNBC’s Jordan Smith. That’s a 50% increase from 2024, but still less than the roughly $30 billion “that was invested in 2021 and 2022,” he added.
Review 2023 and 2024
Le described 2023 as a challenging year for crypto financing due to the collapse of FTX, loss of confidence and higher interest rates.
However, 2024 started strong with positive momentum driven by the approval of spot Bitcoin exchange-traded funds, or ETFs.
Despite a mid-year slowdown, “we’ll probably close [2024] somewhere between $11 [billion] and $12 billion in invested capital, still up 10% to 20% from 2023,” he said.
Financing expectations for 2025
Le predicts $18 billion or more in crypto VC funding, a 50% increase compared to 2024. Several factors bode well for the sector, he says. This includes:
- Generalist investors are regaining interest and are signaling potential major investments.
- Crypto-native funds have significant dry capital but require general participation for significant growth.
- Financial institutions will play a critical role by leveraging their trusted relationships with regulators.
Shift in focus
Le expects a shift in focus toward application-level investments that go beyond infrastructure projects. Examples of this are:
- Decentralized applications (dApps) aimed at non-crypto users with better risk management.
- Use…
