In Q1 2025, crypto fundraising and M&A activity diverged sharply. M&A deal count reached an all-time high of 85, up 18% QoQ, with the six largest disclosed acquisitions totaling $3.23 billion, surpassing the combined value of the quarter’s ten largest funding rounds and accounting for over half of all capital raised. In contrast, fundraising slowed, with total capital raised declining 19% QoQ to $6.32 billion and deal count falling 29% to 640 transactions. Despite the pullback, Q1 remained the second-highest funding quarter of the past two years. Investor participation showed modest recovery, rising 4% QoQ to 1,600 unique investors, though still well below the Q2 2022 peak of 3,300. Accelerator activity contracted sharply, with deals down 64% and capital raised declining 66% QoQ, signaling reduced early-stage momentum. Meanwhile, newly launched fund count fell 13% to 21, but capital raised more than doubled to $1.98 billion, suggesting renewed LP appetite despite fewer new vehicles.
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Jake is a Research Analyst on the Protocol Research team. He previously worked as an Investment Analyst at an AI-driven crypto research platform and as a Venture Analyst at a digital assets venture fund. He advised multiple RWA tokenization projects on tokenomics. Jake graduated from the University of Southern California, where he studied Philosophy and Finance.
Jake is a Research Analyst on the Protocol Research team. He previously worked as an Investment Analyst at an AI-driven crypto research platform and as a Venture Analyst at a digital assets venture fund. He advised multiple RWA tokenization projects on tokenomics. Jake graduated from the University of Southern California, where he studied Philosophy and Finance.