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Hi! Eric here.
Venture capitalists are bullish.
VCs are on course to invest $18 billion in crypto startups this year, which is almost double the level in 2024.
The reasons are plentiful. Jonas Kristensen, head of Wintermute Ventures, the popular liquidity provider’s investment arm, said President Donald Trump’s pro-crypto policies are clearly a boost. So, too, is the entry of traditional financial institutions to the sector.
While investors in past cycles may have thrown money at anything and hoped something would stick, market maturity is now spurring VCs to analyse key metrics such as revenue, distribution, and user bases.
“The general kind of sentiment in 2025 is that fundamentals matter when investing,” Kristensen told me. “There has to be a proper, real business.”
So what are investors betting on?
Kristensen is looking at the blending of fintech and crypto. As financial institutions are using crypto-native solutions like stablecoins, that also means they’ll have to look at things like custody and compliance.
Liam Kelly spoke to VCs on the sidelines of Berlin Blockchain Week this week who said they’re exploring how blockchain can be combined with AI agents. They are also hunting for startups that are building sites with user experiences that are easy to navigate, as well as innovative trading platforms.
Let the good times roll.
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