In 2025, venture capitalists continue to show interest in crypto projects but increasingly focus on those with real-world applications. Despite a decline in the total number of deals in late 2024, investment volume remains significant, with sectors like Web3 and blockchain infrastructure attracting the most attention.
Are There Real-World Applications?
Venture capital remains optimistic about cryptocurrency and blockchain startups in 2025. However, investors prioritize projects with real-world applications bridging Web2 and Web3. HashKey Capital, for instance, focuses on sectors like DeFi, gaming, stablecoins, and AI, with particular interest in decentralized physical infrastructure networks (DePINs) and real-world asset tokenization (RWAs).
Fewer Deals but Increasing Investment Volume
Despite a decline in deal count in late 2024, the total investment volume remained high. In Q1 2024, crypto VC funding reached $2.7 billion. According to PitchBook, by Q4, deal count declined by 46%, yet the investment volume continued to grow. In 2024, the Web3 sector remained leading, attracting $2.1 billion in investments.
Klarna's Shift Toward Cryptocurrency
Klarna CEO Sebastian Siemiatkowski announced plans for crypto integration as the company prepares for a potential US IPO. Previously skeptical of cryptocurrencies, he now openly explores integration options, signaling a strategic shift in the company's approach.
Crypto investments in 2025 show a shift toward projects with real-world applications, capable of bridging traditional and new technologies. However, a decreasing number of deals indicates an increasingly selective investor approach.
