Source: Cointelegraph
Original: “PitchBook: Crypto Venture Deal Volume Declines in Q1, but Funding Doubles”
According to PitchBook, the amount of crypto venture capital deals surged significantly in the first quarter of 2025, despite a notable decline in the number of deals compared to the same period last year.
The venture capital research firm pointed out in its Q1 crypto venture trends report released on May 14 that a total of 405 deals were completed this quarter, a 39.5% decrease from 670 deals in Q1 2024, but a slight increase from 372 deals in Q4 2024.
However, the total value of deals in the first quarter more than doubled year-on-year, reaching $6 billion, compared to $2.6 billion in Q1 2024, and it also doubled from $3 billion in Q4 2024.
Robert Le, a senior crypto research analyst at PitchBook, stated that despite the turbulent macroeconomic environment this quarter, "funds continue to flow into the core practical infrastructure of cryptocurrencies."
Venture capital firms injected approximately $2.55 billion into crypto asset management companies, exchanges, and financial service firms through 16 deals, a scale that far exceeds any other sector.
Crypto infrastructure and development companies received the second-largest share of venture capital, attracting nearly $955 million through 30 deals.
Looking ahead, Le mentioned that Circle's upcoming initial public offering (IPO) "represents the most significant price discovery event for crypto equity since Coinbase went public in 2021."
If Circle's valuation exceeds the rumored range of $4 billion to $5 billion, it could demonstrate to venture capital investors the profitability and sustainability of business models similar to Circle, while also providing a clearer valuation benchmark for future exits. "A strong roadshow could attract new late-stage capital into the market and adjust valuation expectations in the payments and infrastructure sectors."
According to PitchBook data, Circle has raised $1.18 billion in venture capital to date, and the research firm estimates a 64% chance of Circle successfully going public in the future.
Le noted that despite declines or stagnation in the value of other cryptocurrencies, the market value of stablecoins still grew by 12% in the first quarter, rising from $203 billion to $227 billion. "In our view, this differentiated performance highlights an increasingly formed consensus: dollar-denominated settlement remains a killer application for cryptocurrencies, at least partially insulated from broader risk-averse behavior."
Le stated that PitchBook expects venture capital to potentially increase in the short term, "especially for startups in payments, cross-border remittances, and fund management that directly profit from the velocity of stablecoin circulation."
Le added that the $1.4 billion theft incident at Bybit in February—the largest security breach in cryptocurrency history—could accelerate institutional demand for real-time proof of reserves tools, improved asset custody solutions, and middleware that simplifies key management.
"Despite facing broader valuation adjustments, startups addressing these security issues should find a more receptive funding environment," he further added.
Related: Semler Scientific's stock price drops in after-hours trading due to a significant decline in Q1 revenue.
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