Web3 startups continue to attract significant venture funding, with a total of $9.6 billion raised in the second quarter of 2025. This marks the second-largest quarter on record, indicating a growing interest in the Web3 space among investors. While the number of deals decreased to multi-year lows, the average deal size increased, suggesting a shift towards more targeted and strategic investments.
According to a report by Outlier Ventures, investors are increasingly focusing on foundational infrastructure and proven teams, moving away from speculative investments towards long-term sustainability. The research highlights a maturing market where capital is consolidating around projects that can drive the next phase of adoption in the Web3 ecosystem.
The data shows that only 306 deals were disclosed in the quarter, the lowest number since mid-2023. However, the median deal size increased across all stages, with Series A funding making a notable comeback. The median Series A round grew to $17.6 million, with 27 deals totaling $420 million, the largest amount since 2022. Seed funding also saw an uptick, with a median size of $6.6 million.
In terms of token fundraising, private token sales performed well, raising $410 million across 15 deals, the strongest showing since 2021. On the other hand, public token sales experienced an 83% decline to $134 million, indicating a decreased appetite for retail-focused offerings.
The report also highlights the sectors that attracted the largest rounds of funding, with cryptocurrency infrastructure, mining and validation, and compute networks leading the way. These sectors saw medians ranging from $70 million to $112 million, while consumer-facing sectors like marketplaces lagged behind.
Overall, the findings point to a shift towards more strategic and high-conviction investments in the Web3 space. Investors are placing their bets on projects that can provide the necessary infrastructure for the long-term growth of the ecosystem. As Web3 continues to evolve, it is clear that capital is flowing towards projects that have the potential to shape the future of decentralized technologies.