Crypto VC deals top $1.1B in February as DeFi interest surges — The TIE

Venture superior backing into blockchain and cryptocurrency startups accelerated successful February, with decentralized concern (DeFi) projects attracting important concern flows, signaling that request for blockchain builders remained beardown amid volatile marketplace conditions. 

According to information from The TIE, 137 crypto companies raised a combined $1.11 cardinal successful backing successful February. 

DeFi secured astir $176 cardinal successful full backing crossed 20 projects. Meanwhile, 8 concern work providers raised a full of $230.7 million. Startups specializing successful information services, payments and artificial quality besides drew important interest.

Business work providers and DeFi projects attracted the largest investments successful February. Source: The TIE

The biggest task superior investors targeted “multiple sectors, including cardinal narratives specified arsenic AI, Developer Tools, DeFi, DePIN, Funds, and Payments,” The TIE said. 

The information is accordant with Cointelegraph’s caller reporting, which showed a ample uptick successful decentralized carnal infrastructure web (DePIN) deals.

The TIE’s information included crypto concern funds by looking astatine US Securities and Exchange Commission Form D and Form D/A filings. Strix Leviathan had the largest rise astatine $79.95 million, followed by Cambrian Asset Management astatine $20.43 cardinal and Galaxy Digital astatine $18.43 million.

February besides saw six notable mergers and acquisitions, including Forte’s acquisition of Web3 privateness developer Sealance and Phantom’s acquisition of token information level SimpleHash. 

Notable M&A deals successful February. Source: The TIE

 Headline: Crypto VCs uncover what they’re looking for successful 2025

Funding deals expected to turn successful 2025

Crypto markets person experienced utmost volatility successful 2025 arsenic US President Donald Trump kicked disconnected his 2nd word with erratic commercialized policies and tariff threats. However, beyond the short-term volatility, Trump’s pro-crypto administration is expected to bring accrued regulatory clarity to the crypto sector. 

Positive regulatory tailwinds are besides aligning with a rebounding concern cycle and increasing expectations that the US Federal Reserve volition beryllium forced to little involvement rates aggregate times this year. 

Despite regulatory uncertainty, the US accounted for 36% of each crypto task superior deals successful 2024. Clear regulations nether President Trump could service arsenic a catalyst for much important maturation successful 2025. Source: Galaxy Digital

Lower involvement rates and improving macroeconomic conditions are expected to beryllium a nett payment for backstage superior markets. According to Harbour Invest, a Boston-based backstage equity firm, “dealmaking assurance has started to return” — a inclination that was archetypal identified successful the last 4th of 2024.

Against this backdrop, crypto VC deals are expected to apical $18 cardinal successful 2025, according to PitchBook. This marks a notable summation from the $13.6 cardinal raised successful 2024.

Magazine: How crypto laws are changing crossed the satellite successful 2025