#Venture Capital Firms Invest $176 Million in Crypto Sector Despite Market Downturn
Venture capital (VC) firms have continued to show strong confidence in the cryptocurrency and blockchain industry, investing an additional $176 million into crypto startups this week, according to BlockBeats. This fresh wave of funding pushes the total capital raised by crypto companies in 2025 to over $25 billion, significantly exceeding earlier analyst expectations.
This continued inflow of venture funding comes at a time when the broader crypto market has faced notable challenges. Since October, the total market capitalization of cryptocurrencies has declined by nearly $1 trillion, largely due to macroeconomic uncertainty, tighter financial conditions, and periods of high market volatility. Despite these headwinds, institutional investors and venture capital firms appear to be taking a long-term view, strategically increasing their exposure to high-quality crypto infrastructure and innovation-focused projects.
LI.FI Leads Funding Activity
The highest-funded crypto company in the second week of December was LI.FI, a multichain economic connectivity platform. LI.FI successfully raised $29 million in a funding round led by prominent crypto investment firms Multicoin Capital and CoinFund.
LI.FI focuses on enabling seamless asset movement across multiple blockchains, addressing one of the most critical challenges in decentralized finance (DeFi): interoperability. With the newly raised capital, the company plans to expand beyond its core services into several fast-growing crypto trading and financial sectors, including:
Perpetual futures trading
Yield-generating opportunities
Prediction markets
Decentralized lending markets
Additionally, LI.FI intends to use the funding to hire additional staff, strengthen its engineering team, and accelerate product development, positioning itself as a key infrastructure provider in the multichain ecosystem.
focuses on institutional-grade staking services, validator operations, and crypto treasury (Digital Asset Treasury – DAT)
