An interesting phenomenon has emerged in the 2025 crypto investment market — the overall capital scale is roughly in line with expectations, but the actual distribution is more uneven than many people imagined. The money is back, but the trouble is that almost all of it has concentrated in a few companies and specific sectors, and early-stage entrepreneurs are facing the most difficult fundraising environment in recent years.

Why is the capital so concentrated? One key reason is the rapid rise of Digital Asset Reserve companies (DAT). This year, such companies attracted about $29 billion, making them the easiest way for institutional investors to invest in crypto assets, much simpler than supporting early-stage projects.

Traditional venture capital is indeed growing — reaching $18.9 billion in 2025, a significant increase from $13.8 billion in 2024. However, the number of projects receiving this funding has plummeted. The number of VC deals dropped from over 2,900 in 2024 to around 1,200, a decline of over 60%.

Mathijs van Esch, General Partner at Maven11, frankly stated that this level of concentration exceeded his expectations, especially the funding received by DAT companies. "We initially expected to see more early-stage VC influx, but instead, the majority went to listed companies and PIPE financings. This is purely driven by institutional investor behavior."

So why is it so difficult for early crypto projects to raise funds? One straightforward reason is that the amount of capital available for deployment by VC funds is itself decreasing.