Odaily Planet Daily reports that crypto KOL Edgy posted on X that 85% of token issuance projects in 2025 are operating at a loss. Projects backed by venture capital firms are barely breaking even, with some suffering severe losses. According to a Galaxy Research chart, in the second quarter of 2022, crypto venture capital firms raised nearly $17 billion across more than 80 new funds; now, venture capital returns have declined continuously since 2022, the number of new funds has hit a five-year low, and last quarter’s fundraising amounted to only 12% of the second quarter of 2022. The $8.5 billion invested by venture capital firms last quarter was not new capital, but rather leftover funds raised in 2022. The total capital deployed from 2023 to 2025 is roughly equivalent to the amount raised in a single year in 2022. The model of fundraising, token issuance, and retail dumping is coming to an end. As venture capital influence wanes, projects with real users and revenue will prevail, leading to fairer token launches, fewer insider sell-offs, and developers focused more on product optimization than fundraising.
Crypto fundraising hits five-year low; 2023–2025 deployment matches 2022 total
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Summary
Crypto market fundraising hit a five-year low in 2023, with capital deployed from 2023 to 2025 roughly matching the total raised in 2022. Crypto analysis from Galaxy Research shows that VC-backed projects are largely at break-even or operating at a loss, with 85% of token issuance projects unprofitable by 2025. Q2 2022 saw $17 billion raised across 80+ funds, but recent quarters have relied on leftover capital. The traditional model of fundraising followed by retail dumping is fading, as user-driven projects gain momentum.
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