Crypto VC funding rises 31% to $5.7B in Q2 2026, Galaxy Research reports

Crypto venture capital funding rebounded in Q2 2026, rising 31% quarter-over-quarter to $5.683 billion across 384 deals. According to Galaxy Research, this growth was heavily driven by later-stage financing, which captured up to 78% of the capital. The United States remained the primary hub, securing 73.5% of the total funding. However, new fund formation slowed significantly, with only five new funds raising $3.9 billion, marking the lowest quarterly count since late 2019.

Q2 2026 VC funding

• ▪Venture capitalists invested $10.018 billion across 744 crypto and blockchain deals during the first half of 2026.
• ▪Crypto venture capital funding reached $5.683 billion across 384 deals in Q2 2026, representing a 31% increase in capital from Q1 2026.
• ▪Galaxy Research reported that the median crypto venture deal size reached a new high of approximately $4.9 million in Q2 2026.
• ▪The number of completed crypto venture capital deals increased by 10% quarter-over-quarter in Q2 2026.

Later-stage financing concentration

• ▪Later-stage financing accounted for approximately 77% to 78% of all crypto venture capital deployed during Q2 2026.
• ▪Pre-seed and seed rounds accounted for only 7% of the total crypto venture capital deployed in Q2 2026.
• ▪By transaction count, pre-seed rounds accounted for 21% of completed crypto venture deals in Q2 2026, while later-stage investments represented 26%.

Trading sector capital dominance

• ▪Decentralized Finance startups attracted the second-largest amount of crypto venture capital in Q2 2026 with approximately $478 million across 40 deals.
• ▪Trading, exchange, investing, and lending businesses attracted approximately $3.523 billion across 51 deals in Q2 2026.
• ▪More than 90% of the capital invested in the trading, exchange, investing, and lending category in Q2 2026 went to later-stage companies.

U.S. geographic capital concentration

• ▪The geographic concentration of crypto venture capital in the United States increased from Q1 2026, when U.S.-based startups received 70.2% of capital.
• ▪United States-headquartered companies captured 73.5% of total crypto venture capital deployed in Q2 2026 while accounting for 39.1% of completed deals.
• ▪The United Kingdom followed the United States in Q2 2026 crypto venture capital, capturing 4% of capital across 7% of completed deals.

Crypto fund formation decline

• ▪The five new crypto venture funds raised in Q2 2026 represented the lowest quarterly fund count since late 2019.
• ▪Only five new crypto-focused venture funds raised money during Q2 2026, pulling in approximately $3.9 billion combined.
• ▪The $3.9 billion raised by crypto venture funds in Q2 2026 increased from the approximately $1.1 billion secured across eight funds in Q1 2026.

Debatable claims

• ▪The concentration of crypto venture capital in US startups undermines the industry's global decentralization
• ▪The concentration of crypto venture capital in later-stage companies stifles industry innovation
• ▪Venture capital's heavy focus on crypto trading platforms threatens broader ecosystem diversity