Crypto VC Rounds Fall 25% in September, Funding Totals $5.12B

Crypto venture capital activity cooled in September as the number of disclosed funding rounds dropped sharply. Despite the slowdown in deal volume, the total amount raised actually climbed. It shows that larger deals kept the sector moving.

Deal Count Declines but Funding Grows

According to Wu Blockchain’s monthly report, there were 62 publicly disclosed Crypto VC fundraising rounds in September 2025. That figure represents a 25.3% drop from August. Which saw 83 rounds and a 37.4% fall year-on-year, down from 99 in September 2024. Yet, while fewer projects secured backing, the money invested told a different story. 

Total fundraising reached $5.12 billion, a 5.2% increase from August’s $4.87 billion. Compared to September 2024, the jump was massive, up nearly 740% from just $610 million. The contrasting numbers highlight a shift. While investors are becoming more selective. They are still willing to commit significant amounts to projects that show strong potential.

Big Deals Lead the Way

The increase in Crypto VC funding volume was largely driven by several high-profile raises.

• Forward Industries topped the list, completing a $1.65 billion private placement in cash and stablecoins. The funding will support its Solana-based digital asset treasury strategy. Galaxy Digital, Jump Crypto and Multicoin Capital led the round.
• Figure Technology made history by becoming the first listed platform with Real World Assets (RWA) as its core business. Its IPO raised $787 million after strong market demand pushed the offering above its original target. The company now holds a market cap of over $5 billion.
• StablecoinX secured an additional $530 million ahead of its planned Nasdaq listing. The company expects to hold more than $3 billion in ENA after its merger with TLGY Acquisition.

Other significant raises included Helius Medical $500 million PIPE financing, ETHZilla $350 million bond issuance and Flying Tulip $200 million seed round. This led by high-profile investors such as Brevan Howard Digital and DWF Labs.

Sector Breakdown Shows Mixed Trends

The distribution of deals across sectors showed where investors are focusing their bets:

• CeFi represented about 21% of rounds, with large raises from Forward Industries, Figure and others.
• DeFi accounted for around 25.8%, led by Flying Tulip blockbuster seed raise.
• AI and Layer 1/2 projects each captured 12.9% of deals, showing steady interest in infrastructure.
• NFTs and GameFi made up just 4.8%, reflecting continued cooling in that segment.
• Tools and wallets saw 11.3%, while RWA/DePIN projects accounted for 6.5%.

The Crypto VC report data suggests that while some categories like NFTs are struggling. Areas tied to financial infrastructure, real-world applications and scalability are attracting more attention.

Investor Confidence Remains Selective

Despite the fall in the number of deals, the market’s appetite for large bets remains clear. Firms like Fnality, which raised $136 million to expand its central bank digital currency settlement system. Zerohash, which hit unicorn status with a $104 million raise. It shows that investors still see long term value in blockchain infrastructure. Meanwhile, traditional players are also moving deeper into the space. Bit Digital, for example, announced a plan to raise $100 million through convertible notes. It aims to expand its Ethereum holdings and explore tokenization opportunities.

Future Outlook

The September Crypto VC report data reveals a market that is cautious but far from retreating. Investors are tightening their selection process, favoring projects with strong fundamentals, regulatory readiness or unique use cases. While the deal count has fallen sharply. The rising average deal size underscores a shift toward quality over quantity. If this trend continues, October could see fewer but even larger raises. As venture capital adjusts to new market realities while still fueling blockchain innovation.