Crypto Venture Capital Predicted to Exceed $18 Billion in 2025
Crypto venture capital activity in 2023 has shown fluctuations, with a slight decline in the third quarter attributed to seasonal trends. PitchBook’s Robert Le noted that while initial momentum was strong at the year's start, investments slowed during summer, particularly among crypto-native VC firms.
Post-election, anecdotal evidence suggests a resurgence in investment activity, with expectations of over $18 billion in venture investments and multiple quarters exceeding $5 billion. In contrast, 2023 is projected to finish around $11 billion, with quarterly totals between $2 billion and $2.5 billion.
Generalist VC firms are anticipated to re-enter the crypto space next year. Key areas for future investment include the intersection of cryptocurrency and artificial intelligence (AI), which has gained traction this year. Le acknowledges the potential business applications of this combination, recognizing emerging opportunities as AI challenges become apparent.