Pitchbook has come out with a fresh report forecasting substantial growth in crypto investments. According to the report, it is anticipated that venture capital (VC) funding in the sector would reach $18 billion in 2025, nearly double the current amount of $9.9 billion expected in 2024.
Causes for Increased Demand for Venture Capital Funding
The reasons for this increase are highlighted in Pitchbook’s 2025 Enterprise Technology Outlook are:
Generalist VCs Coming Again: Many of the generalist VC firms that have been coming back into the crypto space for some time have clearer use cases in the growing parts of DeFi, Web3, and consumer applications-matched markets.
Big Financial Institutions Entering: BlackRock, Franklin Templeton, Goldman Sachs, and a handful of the major behemoth financial institutions have taken the bold step into this space. It makes the presence more real and trustworthy.
Such institutions also possess intensive regulatory experiences, enabling them to serve as reliable intermediaries. Such things have been very hard for the pure crypto firms.
A Shift in the Focus of Investment
Generalists will care about different aspects. Clear revenue streams:
- Proven market demand
- Pathways towards profit
This may mean that they will fund a much more practical ready-to-market sort of project as opposed to slightly speculative ideas. Maybe this is just a new form in investing different traditional crypto metrics such as tokenomics.
Bigger Investments Expected
Generalist VCs will probably return this investment, thus resulting in larger deals. Late-stage financing might also involve more nine-figure funding rounds. Such a change may also boost valuations for crypto companies.
Bright Future for Crypto
This renewed optimism about crypto among the analysts at Pitchbook stems from three key macroeconomic factors:
- much lower interest rates;
- improved liquidity in the world;
- increased public token prices.
All these elements, combined with an infusion of VC funding, could determine the role that crypto will play in digital transformation. Investors are betting on crypto as a foundation for innovations in AI, fintech, and traditional finance.
In short, crypto funding is set to grow. Generalist VCs and major financial institutions will play a big role in shaping the next phase of the industry.
