In an impressive turn of events, Web3 startups have secured a staggering $9.6 billion in venture funding during the second quarter of 2025, marking the second-largest quarter on record, according to a comprehensive report by Outlier Ventures. This surge in funding signifies a noteworthy trend within the cryptocurrency industry, indicating that investors are becoming more discerning, channeling their investments into a select number of promising projects rather than spreading their capital too thin.
The report highlights a substantial decline in the number of deals—only 306 disclosed, a multi-year low—but a remarkable increase in the median deal size across various funding stages. This transition hints at a maturing market where strategic investments take precedence over speculative ventures. As the landscape evolves, investors are gravitating towards foundational infrastructure and proven teams, demonstrating a shift from broad investments to those with a higher conviction.
“Capital is consolidating around the projects that can provide the rails for the next phase of adoption,” noted Outlier, emphasizing the importance of robust infrastructure for the future growth of Web3.
Notably, Series A funding has made a significant comeback after a period of stagnation during the bear market, with the median round increasing to $17.6 million. This resurgence reflects 27 deals totaling $420 million, underscoring renewed interest in early-stage projects. Additionally, seed funding has shown promising growth, with a median size of $6.6 million.
While private token sales have enjoyed a robust showing, bringing in $410 million across 15 deals—the most substantial performance since 2021—public token sales have seen an alarming decline, plummeting 83% to just $134 million. This stark contrast highlights a waning interest in retail-focused offerings as the focus shifts towards projects that offer deeper utility.
Regions such as cryptocurrency infrastructure, mining and validation, and compute networks have attracted the largest rounds of funding, with median sizes ranging between $70 million and $112 million. In contrast, consumer-facing sectors like marketplaces have lagged behind significantly. The findings from Outlier Ventures reflect a critical moment in the cryptocurrency landscape, pointing to an evolving investor mindset towards more sustainable and impactful Web3 projects.
Web3 Startups Funding Landscape Q2 2025
The latest report indicates significant trends in Web3 startup funding that could shape the future of technology and investment strategies.
- Funding Volume
- Web3 startups raised $9.6 billion in Q2 2025, the second-largest quarter on record.
- The number of deals fell to 306, the lowest since mid-2023.
- Investment Trends
- Shift from hype-driven investing towards strategic, durable investments.
- Investors are now favoring foundational infrastructure and experienced teams over volume.
- Series A Revival
- Series A funding saw a resurgence with a median round of $17.6 million and a total of 27 deals.
- Token Fundraising Trends
- Private token sales raised $410 million, the strongest since 2021.
- Public token sales fell sharply by 83% to $134 million.
- Sectors of Focus
- Cryptocurrency infrastructure, mining, and validation saw large funding rounds, with medians between $70 million and $112 million.
- Consumer-facing sectors such as marketplaces received significantly less funding.
“Capital is consolidating around the projects that can provide the rails for the next phase of adoption,” highlighting the importance of infrastructure for Web3’s growth.
Web3 Fundraising Trends: A Shift Towards Strategic Investment
The recent report by Outlier Ventures highlights a significant evolution in Web3 fundraising, with startups in this sector securing $9.6 billion in venture capital during Q2 2025. This marks the second-largest funding quarter on record, signaling a maturation in the market, though the overall number of disclosed deals has significantly declined. This contrasted trend indicates a potential shift in investor mentality, moving away from sheer volume and toward more prudent, high-value placements in promising projects.
Competitive Advantages: One of the most notable advantages emerging from this landscape is the increased size of the median deal, which suggests that investors are now prioritizing quality over quantity. The resurgence of Series A funding, with median rounds reaching $17.6 million, indicates a renewed confidence in early-stage projects that demonstrate substantial potential. Critical sectors such as cryptocurrency infrastructure and compute networks are now drawing significant capital, reinforcing the idea that foundational technology will play an essential role in Web3’s progression.
Disadvantages: However, this trend also poses challenges, particularly for emerging startups that may struggle to secure funding without a proven track record or strong foundations. The decline in public token sales, down 83%, reflects a diminishing appetite for retail-focused offerings, which could restrict market access for smaller, innovative projects trying to gain traction in a competitive arena. This consolidation of capital could stifle diversity within the ecosystem, making it difficult for novel ideas to emerge and succeed.
This evolving landscape could benefit established ventures with proven teams and robust infrastructures as they become more appealing to investors. Conversely, less mature startups or those reliant on speculative funding may face significant hurdles, as the focus shifts toward sustainable, long-term projects. As investors hone in on “rails for the next phase of adoption,” those unable to demonstrate durability and strategic vision may encounter increasing difficulties in garnering necessary support.
