Q3 virtual asset investments totaled 296 cases, down 24% from the previous quarter

Venture funding for crypto and blockchain companies fell to 296 deals worth $4.519 billion in Q3, down 24% in deal count and 20% in capital from the prior quarter even as bitcoin (BTC) rose 43% over the same period, according to Galaxy Research's quarterly venture report. Late-stage companies absorbed 76.5% of total invested capital, while pre-seed and seed rounds accounted for 44.9% of deals but just 6% of dollars, underscoring a market where capital concentrated in fewer, larger rounds even as overall activity cooled. The divergence between rising BTC prices and shrinking venture flows matters because it suggests price gains did not translate into broader early-stage risk appetite. Watch next-quarter deal counts and seed-stage share for signs of a funding recovery, along with methodology differences across trackers such as CryptoRank that can shift reported totals.