Q3 global virtual asset VC investment tops 6.8 trillion won…recovery evident

Global blockchain and virtual asset (cryptocurrency) venture investment in Q3 totaled $4.65 billion (about 6.8463 trillion won), marking the second-largest quarterly result since the FTX collapse. Analysts say signs of recovery have become more apparent since last year's downturn.

On the 25th (local time), Cointelegraph, citing a report by Galaxy Digital, said global VC investment in Q3 increased 290% from the previous quarter. This is the second-largest amount this year after Q1's $4.8 billion (about 7.0665 trillion won). The report explained that stablecoins, artificial intelligence, blockchain infrastructure, and trading firms have become the main investment focuses.

In Q3, a total of 414 venture deals were completed, with the top seven accounting for half of total fundraising. Revolut raised $1 billion (about 1.4722 trillion won) as the largest round, Kraken raised $500 million (about 736.1 billion won), and crypto-focused bank Erebor raised $250 million (about 368 billion won).

By company founding year, firms founded in 2018 attracted the most capital. However, the number of deals was highest for early startups founded in 2024. The share of pre-seed is steadily decreasing as the industry matures.

Galaxy Digital pointed to a decline in interest in previously popular sectors such as NFTs and gaming, capital shifting to AI startups, and a high-interest-rate environment as causes of stagnation in VC investment. It also analyzed that institutional funds moving into spot Bitcoin exchange-traded funds and digital asset treasury management firms have dampened demand for early-stage company investment.

By country, the U.S. accounted for 47% of total investment, the highest share. The U.K. was 28% and Singapore 3.8%. In terms of deal counts, the U.S. also led with 40%, followed by Singapore at 7.3% and the U.K. at 6.8%.

The report said, "Following the Trump administration's pro-crypto policies and the implementation of the Genius Act, if the U.S. Congress passes additional market-structure legislation for the crypto market, the entry of traditional financial institutions into the industry will further expand."