This report summarizes the Web3 industry’s fundraising landscape in May 2025. A total of 122 deals were completed, raising $1.92 billion. Among them, the CeFi sector dominated with over $1.2 billion in funding. Traditional financial instruments such as mergers & acquisitions and PIPE investments were frequently employed, indicating that institutional capital is accelerating its deployment into compliant, integrable centralized infrastructure. In terms of deal size, the distribution was characterized by a “middle-heavy, ends-thinning” pattern, suggesting a market-wide shift toward reduced risk appetite and a preference for mid-sized projects with initial validation and growth potential. Regarding deal stages, a K-shaped structure emerged: early-stage projects remained highly active, while capital was increasingly concentrated in later-stage rounds. The report also highlights major projects including Antix, Turtle Club, T-Rex, VOYA Games, and KYD Labs.

Key Takeaways:

• Fundraising Overview: In May 2025, the Web3 sector recorded 122 funding deals totaling $1.92 billion, down 35.35% from April’s $2.92 billion, though the number of deals rose by 28.4% from 95. This suggests a rebound in market activity despite the overall cooling of the fundraising climate in Q2. As conditions tighten, small and mid-sized projects are facing increased fundraising pressure, and capital distribution has grown more conservative—marking a transition into a new phase centered on “quality-first and selective screening.”
• Convergence of Web3 and TradFi: The top 10 deals reveal that institutional capital continues to flow primarily into CeFi, blockchain services, and infrastructure. The frequent appearance of M&A and PIPE deals underscores the accelerating integration between Web3 and traditional finance (TradFi).
• Hot Sectors and Funding Distribution: Fundraising activity was heavily concentrated in CeFi ($1.29 billion) and blockchain services ($274 million), with CeFi taking a dominant position. This reflects institutional investors’ strong focus on regulatory compliance, service capabilities, and integration pathways with TradFi. Deal sizes showed a clear middle-heavy pattern, with deals ranging from $3 million to $10 million accounting for 32.9% of the total. This trend points to a capital preference for mid-sized projects that have already demonstrated some traction and growth potential.
• Active Deal Stages and Key Investors: The fundraising landscape displayed a structural K-shaped pattern: early-stage rounds (seed and strategic) were highly active, making up 64.9% of total deal count, while Series A and B rounds accounted for 60.9% of total capital raised, highlighting a bifurcated market where both early exploration and mid-to-late-stage bets coexist. Alliance DAO led all investors with six deals, focusing primarily on DeFi, while also covering blockchain infrastructure and on-chain services.
• Rapid Progress Among Key Projects: Projects such as Antix, Turtle Club, T-Rex, VOYA Games, and KYD Labs are pushing innovation in areas like AI avatars, on-chain liquidity, Web2-to-Web3 onboarding, and Web3-native ticketing, signaling that beyond infrastructure and TradFi integration, the market remains actively engaged in exploring emerging technologies and novel use cases.

Gate Reach is a comprehensive blockchain and cryptocurrency research platform that provides readers with in-depth content, including technical analysis, trending insights, market reviews, industry research, trend forecasts, and macroeconomic policy analysis.

Disclaimer
Investing in the cryptocurrency market involves high risk. Users are advised to conduct independent research and fully understand the nature of the assets and products before making any investment decisions. Gate is not responsible for any losses or damages arising from such investment decisions.

Gate Team
Jun 9th, 2025

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