These VCs Are Investing In Crypto

Venture Capital Investment Trends in Europe

According to recent data from KPMG, venture capital investment in Europe remained stable in the third quarter of the previous year, with total funding reaching $17.4 billion, an increase from $15.2 billion in the second quarter. Despite a lower number of deals, significant transactions, particularly in AI, fintech, and crypto, influenced the market. Notably, UK-based crypto and cloud infrastructure firm PS Miner secured $350 million, indicating continued investor interest in digital assets.

UK venture capital investment increased to $6.2 billion in the third quarter of 2025, marking a recovery from a weaker second quarter. Noteworthy deals included Rapyd Financial raising $500 million and PS Miner obtaining $350 million. The outlook for the sector appears positive, as companies that have recently gone public are performing well.

Factors Influencing Investment Decisions

Investment decisions are currently influenced by macroeconomic and geopolitical uncertainties, prompting investors to conduct thorough examinations of deals. Startups are focusing on extending their cash reserves and demonstrating clear paths to profitability. European governments are also supporting essential infrastructure, such as semiconductor manufacturing, to maintain investment and innovation within the region.

Cleantech startups received significant funding, with Iceland's Laxey raising $183 million, Germany's 1KOMMAS securing $175 million, and Sweden's Aira obtaining $174 million. These investments highlight the continued attraction of venture capital to sectors associated with the energy transition.

The UK crypto sector is anticipated to grow as new legislation is slated to come into effect in 2026. This could lead to increased funding for stablecoins and other digital asset projects. The AI sector remains a prominent area of interest, alongside defensetech and fintech, which have experienced a strong year. The crypto and digital assets sector may expand within European venture portfolios as regulations provide clarity and confidence.

Founded in 2017, Innovating Capital is a venture firm focused on deep-technology and digital assets, managing approximately $220 million in committed capital. The firm invests in blockchain protocols, decentralized finance, and tokenized credit. Innovating Capital adopts a proactive investment approach, concentrating on sectors requiring deep technical expertise, such as crypto and Web3 infrastructure, cybersecurity, enterprise software, and AI.

AlbionVC manages approximately £1 billion, with a focus on B2B software, deeptech, and healthtech companies. The firm's digital assets strategy targets institutional-grade infrastructure and the bridges between traditional finance and the crypto economy, exemplified by their investments in Elliptic, OpenTrade, and Agio Ratings.

Improbable, founded by Herman Narula, invests in and creates startups in the crypto, blockchain, and AI sectors. The company collaborates with founders to build and scale ventures, focusing on infrastructure platforms powering decentralized ecosystems. Improbable's model aims to accelerate innovation and mainstream adoption of crypto technologies.

Foresight Ventures is a global venture capital firm investing in cryptocurrency, blockchain, and the broader Web3 ecosystem. The firm invests in projects with strong technical foundations and scalable business models. Foresight Ventures maintains a global perspective, investing across Asia, Europe, and North America, driven by the belief that blockchain technology will transform financial systems and digital infrastructure.

Based on reporting by techround.co.uk.