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Crypto VCs shift to later-stage bets, leaving founding-stage deals scarce

Galaxy Research data shows later-stage firms drew 57% of capital in Q1 2026, while pre-seed deals accounted for 19% of completed transactions.

Reported · Written up by our desk · Market Structure

CoinDesk reports that crypto venture capital is increasingly clustering around later-stage companies, a pattern the outlet’s analyst frames as consensus behavior rather than the early, risk-taking model the industry markets.

The piece cites Galaxy Research’s Q1 2026 crypto venture capital report, saying investors allocated about $1.1 billion to eight new crypto venture funds, the lowest quarterly fund count since the third quarter of 2020. It also notes that later-stage companies absorbed 57% of capital deployed, while pre-seed deals made up just 19% of completed transactions.

According to the analysis, the shift means capital is not disappearing, but moving toward bigger checks for fewer companies that have already shown product-market fit. The author argues that waiting for traction can reduce uncertainty but also raises the price and intensifies competition for the same small group of proven businesses.

The article adds that it sees a potential opening for investors willing to fund earlier while broader sentiment remains cautious and attention is being pulled by AI, citing OECD analysis that AI companies attracted 61% of global venture capital investment in 2025.

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