Web3 startups raised $9.6 billion in venture funding in Q2 2025, the second-largest quarter on record. Despite a drop in the number of deals, the market appears to be maturing, with investors focusing on durability and foundational infrastructure over volume, according to a report by Outlier Ventures.

The shift in Web3 fundraising is evident in the evolution from hype-driven activity to targeted, durability-focused investment. Investors are favoring proven teams and foundational infrastructure, with only 306 deals disclosed in the quarter, the lowest since mid-2023. The median deal size increased across all stages, reflecting a move towards strategic, high-conviction investments.

Series A funding saw a resurgence, with the median round size growing to $17.6 million. Seed funding also increased, with a median size of $6.6 million. Private token sales reached $410 million in 15 deals, the strongest showing since 2021, while public token sales dropped 83% to $134 million, signaling a decline in retail-focused offerings.

Sectors like cryptocurrency infrastructure, mining, validation, and compute networks secured the largest rounds, with medians ranging from $70 million to $112 million. Consumer-facing sectors, like marketplaces, lagged behind. Outlier Ventures noted that capital is consolidating around projects seen as essential for Web3’s long-term growth, particularly those focusing on infrastructure.

Read more at Yahoo Finance: Web3 Funding Hit $9.6B in Q2 Despite Fewer Deals