CoinDesk
Crypto venture capital is increasingly flowing to companies that have already proven themselves, with later-stage rounds taking 57% of capital deployed in the first quarter, according to Galaxy Research. Pre-seed deals accounted for just 19% of completed transactions during the period, while only eight new crypto funds raised a combined $1.1 billion, the lowest quarterly fund count since Q3 2020. Varun Datta, CEO of Truth Ventures, argues the shift toward safer bets is a consensus trade dressed as discipline.
Why it matters
Later-stage capital concentration is the visible signal, but the foundational one is what is happening at the founding end of the market. When pre-seed and seed deals shrink to 19% of transactions, the deal pipeline that feeds the next cycle is being thinned before it starts. Datta's reading is that paying up for proven businesses is not contrarian investing; it is competing with every other investor pursuing the same small group of validated companies. The capital has not disappeared, but it has migrated up the cap table into a smaller number of bigger checks.
Market impact
AI absorbed 61% of global venture capital in 2025 according to OECD analysis cited in the column, leaving crypto founders competing for a shrinking pool of risk-tolerant dollars. The week's news flow illustrates the tension on both sides of the cap table. Charles Schwab will add direct trading for Solana, Avalanche and Chainlink to Schwab Crypto in the coming months, expanding beyond bitcoin and ether through a venue backed by nearly $12 trillion in client assets. BlackRock lowered the minimum for its IBIT bitcoin-to-ETF in-kind swap from $25 million to $1 million, a mechanism that has already processed more than $5 billion. Trump Jr.'s 1789 Capital is leading a roughly $1 billion Polymarket raise at a $21 billion valuation, lifting the prediction market 40% in valuation in a matter of months. Robinhood chain's daily DEX volume hit an all-time high of $1.49 billion on August 31, up roughly 474% from the start of the month, with the chain's CASHCAT token climbing about 373% over the same span.
Frequently asked questions
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Why are crypto VCs shifting toward later-stage deals?
Crypto VCs are concentrating capital on companies that already demonstrate product-market fit, with later-stage deals taking 57% of Q1 capital deployment per Galaxy Research.
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How thin is the founding-stage crypto market right now?
Pre-seed deals fell to just 19% of completed crypto venture transactions in Q1, and only eight new crypto funds raised a combined $1.1 billion, the lowest quarterly fund count since Q3 2020.
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What share of global VC went to AI in 2025?
AI companies attracted 61% of global venture capital investment in 2025, according to OECD analysis cited in the column.
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What will Charles Schwab add to its crypto platform?
Charles Schwab will add direct trading for Solana, Avalanche and Chainlink to its Schwab Crypto platform in the coming months, expanding beyond bitcoin and ether through a venue backed by nearly $12 trillion in client assets.
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How much did Robinhood chain's daily DEX volume reach?
Robinhood chain hit an all-time-high daily DEX volume of $1.49 billion on August 31, up roughly 474% from the start of the month, with the chain's CASHCAT token climbing about 373% over the same period.
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