Crypto VC funds struggle to capture money as startup fundraising rebounds in 2025
Crypto venture capital (VC) firms are experiencing operational strain and consolidation, even as project-level fundraising gains momentum.
In the first quarter, crypto startups raised $5.85 billion, already accounting for nearly 61% of the capital raised throughout 2024, according to DefiLlama.
Varys Capital head of venture Tom Dunleavy shared that, despite this influx, fewer active funds are deploying capital, and many firms launched during the last market cycle are no longer consistently participating in deals.
He attributed the pullback to dwindling capital reserves and a lack of meaningful returns and described the situation as “massive consolidation coming in crypto VC.”
Dunleavy noted that many funds raised in 2021 and 2022…
