Galaxy Research reports $5.7B crypto VC funding rebound in Q2 2026
Late-stage deals drove 77% of capital deployed as new fund formation hit its lowest point since late 2019
Crypto venture capital roared back in the second quarter of 2026, with investors deploying $5.683 billion across 384 deals. That’s a 31% jump in capital from Q1, according to Galaxy Research’s quarterly report published on September 16.
The deal count ticked up 10% quarter-over-quarter too.
Big checks for big companies
Late-stage financing accounted for roughly 77% of all capital deployed during the quarter. Early-stage deals captured about 15%, with seed and pre-seed rounds scraping together just 7% of the total.
One category dominated above all others. Trading, exchange, investing, and lending businesses collectively attracted approximately $3.523 billion. That figure is remarkable not just for its size but for its concentration: it came from only 51 deals.
Quick math puts the average deal size in that category north of $69 million.
New fund formation tells a different story
Only five new crypto-focused venture funds raised money during Q2 2026, pulling in approximately $3.9 billion combined. Galaxy Research flagged this as the lowest volume of new fund formation since Q4 2019.
The news moving money, markets, and the world—before your day starts.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
For context, Q4 2019 was a period when Bitcoin was trading around $7,000 and most institutional investors still treated crypto as a novelty.
America’s gravitational pull
The United States continued to function as the center of gravity for crypto venture activity. US-based companies captured 73.5% of total capital deployed during Q2 and accounted for 39.1% of all deals.
That capital-to-deal ratio is striking. American companies represented less than four in ten deals but attracted nearly three-quarters of all dollars.
What this signals for the rest of 2026
For founders at the seed stage, the math is challenging. Seven percent of $5.683 billion works out to roughly $398 million spread across what is likely a large number of small deals.
The trading and exchange category’s dominance also raises questions about sector diversity. When one vertical absorbs more than 60% of total funding, the health of the broader ecosystem depends heavily on that vertical’s continued performance.