Fewer Deals, Bigger Bets Signal Market Maturity
Web3 startups secured $9.6 billion in venture capital during Q2 2025, marking the second-largest quarter on record despite the number of deals falling to a two-year low, according to a new report by Outlier Ventures.
Only 306 deals were disclosed in the quarter, the fewest since mid-2023. However, median deal sizes surged, reflecting a shift toward high-conviction investments in core infrastructure rather than speculative projects.
“Capital is consolidating around the projects that can provide the rails for the next phase of adoption,” the report noted, emphasizing that infrastructure-first strategies are now seen as “indispensable” for Web3’s long-term growth.
Series A Comeback and Larger Seed Rounds
The report highlighted a strong recovery in Series A funding, which had slowed during the last bear market. Median Series A rounds climbed to $17.6 million, the highest in over two years, across 27 deals totaling $420 million. Seed funding also grew, with the median size reaching $6.6 million, suggesting renewed investor confidence in early-stage Web3 ventures.
Infrastructure Leads, Consumer Projects Lag
The bulk of capital flowed into validator liquidity, rollups, and compute networks, with median round sizes ranging from $70 million to $112 million. These areas outpaced consumer-facing sectors such as marketplaces, which attracted far smaller deals.
Outlier Ventures stated that investors are prioritizing projects that strengthen blockchain scalability and security, laying the groundwork for the next wave of decentralized applications.
Token Fundraising Shows Mixed Trends
Private token sales raised $410 million across 15 deals, marking their strongest quarter since 2021. In contrast, public token sales plunged 83% to $134 million, signaling waning retail interest.
Overall, the data reflects a maturing Web3 market where VCs prefer fewer but strategic, durability-focused investments over broad, speculative bets. With infrastructure projects dominating and capital concentration increasing, analysts believe these moves position Web3 for sustained growth beyond the hype cycle.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.