Analyst: Number of New Crypto Funds Hits 5-Year Low, Total Capital Raised from 2023 to 2025 Only Comparable to Full Year 2022

Odaily News According to a post by crypto KOL Edgy on platform X, 85% of token launch projects in 2025 are operating at a loss. Deals involving projects backed by venture capital firms are barely breaking even, with some even incurring significant losses. A chart from Galaxy Research shows that in Q2 2022, crypto venture capital firms raised nearly $17 billion through over 80 new funds in a single quarter. Currently, the return on investment for venture capital firms has been declining continuously since 2022, with the number of new funds hitting a 5-year low. The amount raised last quarter was only 12% of that in Q2 2022. The $8.5 billion invested by venture capital firms last quarter was not new capital but leftover funds raised in 2022. The total capital deployed from 2023 to 2025 is roughly equivalent to the amount raised in the single year of 2022. The model of raising funds, launching tokens, and dumping them on retail investors is coming to an end. As the influence of venture capital firms wanes, projects with real users and revenue will prevail. The future will see fairer launch methods, less insider dumping, and more developers focused on optimizing products rather than fundraising.