Crypto VC deals reach $1.1B in February amid DeFi surge

Venture capital funding for blockchain and cryptocurrency startups surged in February, with decentralised finance (DeFi) projects attracting a significant share of investments.

According to The TIE, 137 crypto firms raised a total of $1.11 billion, with DeFi projects securing nearly $176 million across 20 deals.

Business service providers received $230.7 million, while startups in security, payments, and artificial intelligence also attracted substantial funding.

Major investors focused on AI, DeFi, decentralised physical infrastructure (DePIN), and payments, highlighting strong demand for blockchain-related ventures despite market fluctuations.

Strix Leviathan led the fundraising with $79.95 million, followed by Cambrian Asset Management at $20.43 million and Galaxy Digital at $18.43 million.

Six notable mergers and acquisitions occurred, including Forte’s acquisition of Sealance and Phantom’s purchase of SimpleHash.

The crypto sector is expected to benefit from increased regulatory clarity under the Trump administration, which could drive further growth in 2025.

PitchBook estimates that crypto VC deals will surpass $18 billion in 2025, up from $13.6 billion in 2024, supported by improving macroeconomic conditions and lower interest rates.

The rising investment reflects growing institutional interest in DeFi, DePIN, AI, and payments, positioning venture-backed firms to drive the next phase of crypto adoption.

Despite market uncertainties, the sustained funding highlights the resilience and potential of the blockchain industry.

As venture capital continues to shape the crypto landscape, its role in fostering innovation and mainstream adoption remains crucial.