vc

Even with crypto markets showing signs of strength, raising a venture capital (VC) fund in the sector has become more challenging than ever. The scars left by the 2022 collapses of Terra and FTX continue to weigh heavily on limited partners (LPs), and capital has grown increasingly selective.
The Post-2022 Shift in Trust: While market sentiment on Bitcoin and Ethereum has improved, LPs remain cautious. Institutional investors — pensions, endowments, and funds-of-funds — have largely pulled back. Family offices and crypto-native investors still participate, but the pool of active backers is far smaller than it was during the 2021 boom.
The Numbers Tell the Story: 2022: $86B raised across 329 crypto funds. 2023: $11.2B. 2024: $7.95B. 2025 (so far): Just $3.7B across 28 funds. This steep decline shows how dramatically the fundraising environment has shifted. LPs want real returns, not just paper gains, and many are holding off until funds prove their ability to distribute profits.
Flight to Quality: Top-performing firms with strong track records continue to attract commitments, but mid-sized funds are under heavy pressure. Analysts describe the landscape as a “flight to quality,” with mega-funds like a16z and Paradigm thriving while weaker players fade away. Small, highly focused funds under $50M may survive — but the middle tier risks disappearing.
Competition From Other Assets: Crypto VC is no longer the only game in town. ETFs, digital asset treasuries (DATs), and even AI-related plays are drawing LP attention. With high interest rates making liquid, safer assets more appealing, crypto venture’s long-term and higher-risk profile feels less attractive.
What’s Next? Most experts believe consolidation is inevitable. The strongest firms will capture a greater share of capital, while others vanish. Some predict hybrid models, where crypto VCs branch into Web2 and traditional VCs cautiously expand into crypto.
The big return of LPs may hinge on three things: Regulatory clarity to ease institutional concerns. Lower interest rates that redirect capital into risk assets. A breakout narrative — like stablecoins or another transformative use case — that reignites investor excitement. Until then, fundraising remains an uphill climb, even in a bull market. DYOR No Financial advice!
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Despite the ongoing crypto winter, Ripple has successfully raised $500 million in a Series C funding round. This signals strong investor confidence in the company's business and its use of XRP for cross-border payments.
The funding round was led by Tetragon, with participation from Route 66 Ventures and SBI Holdings.The fresh capital will be used to expand Ripple's hiring and accelerate its growth into new international markets.Ripple CEO Brad Garlinghouse stated that the company is in a "strong financial position" and is continuing to recruit talent while many others are slowing down.
This substantial investment highlights a key trend of venture capital flowing into established crypto projects with clear utility, even during a bear market.
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