Web3 startups have secured $9.6 billion in venture capital during the second quarter of 2025, marking the second-highest quarterly total on record. However, the funding was concentrated among a smaller number of companies, with the number of deals dropping to its lowest level in two years, signaling a shift to larger, more strategic investments.
Despite a multi-year low in the number of transactions, web3 startups secured $9.6 billion in venture capital during the second quarter of 2025, the second-highest quarterly total on record.
Just 306 transactions were disclosed during Q2, the lowest number since mid-2023, according to the most recent report from Outlier Ventures.
Nevertheless, the median deal sizes increased across all stages, indicating a transition to infrastructure-focused wagers with a higher level of conviction.
Web3 Funding Transitions to a Reduced Number of Larger Bets on Core Infrastructure
According to Outlier’s report, the market is maturing, as investors now opt for fewer, larger rounds for foundational projects rather than a broad exposure to early-stage speculation..
Series A funding, which had been stagnant in the post-bear market era, experienced a significant increase. This marks the highest median Series A round since early 2022, with 27 transactions totaling $420 million. The median round increased to $17.6 million.
Seed rounds also experienced a rebound, with a median of $6.6 million, while pre-seed remained consistent at $2.35 million.
Capital raised by infrastructure took the lead. The median round for cryptocurrency infrastructure firms was $112 million, with Mining & Validation following at $83 million and Compute Networks at $70 million.
Concentrated interest in these sectors was generated by funds that prioritized long-term scalability and backbone technologies, such as validator networks, rollup layers, and computation primitives for AI-aligned consensus models.
In contrast, consumer-facing sectors, including entertainment and marketplaces, experienced moderate transaction sizes and restricted momentum.
The investor focus has decisively shifted toward infrastructure-for-consumer bets, high-functionality platforms that bridge the gap between tech depth and end-user experience.
A bifurcated trend was observed in token financing. The strongest private performance since 2021 was achieved through private token sales, which raised $410 million across just 15 transactions. Strategic treasury deals and rollup ecosystems drove this performance.
Nevertheless, retail appetite diminished, resulting in an 83% decrease in public token sales from the previous quarter to $134 million.
Outlier Ventures characterized the trend as “capital consolidation around the rails of the next cycle.”
Pure Crypto’s First Fund Soars Nearly 1,000%
Pure Crypto, a comparatively low-profile entity in the digital asset sector situated outside of Chicago, has recently attracted attention by disclosing that its flagship fund has experienced a nearly 1,000% increase in value since its inception in 2018.
A $60 million fund, initially a crypto experiment within a traditional wealth management firm, is now supported by a cutting-edge strategy and family office capital.
Pure Crypto, a $100 million crypto-focused fund of funds, was established by Jeremy Boynton, who also serves as the manager of Laureate Wealth Management, and is co-managed by Zachary Lindquist.
The duo is raising capital for their fourth fund, which they anticipate will capitalize on the final surge of venture-style returns in cryptocurrency.
Boynton stated, “We believe this may be the final chapter in the venture capital-like nature of crypto returns.”
The wild west days of outsized gains are closing as regulation solidifies, as evidenced by the recent stablecoin bill signed into law by former President Donald Trump, and major corporations explore the integration of digital currencies.