Crypto venture capitalist (VC) funding plunged to a near two-year low in April as investors pulled back from crypto start-ups and early-stage companies.
Crypto VC funding fell to $659 million across 63 funding rounds in April, down 74% from the $2.6 billion seen across 84 rounds in March, according to Cryptorank data. This brings the total year-to-date investments to $5.64 billion so far in 2026.
The April total was the lowest monthly fundraising sum since July 2024, when crypto projects raised $622 million across 132 rounds.
The drop suggests venture investors became more selective as crypto markets remained under pressure following months of weaker liquidity and risk appetite.
Monthly VC funding has been declining since October 2025, when crypto projects raised $3.84 billion across 127 funding rounds. The global crypto market cap has since fallen by 37%, according to CoinGlass data.
Crypto fundraising, US dollars, three-year chart. Source: Cryptorank
Decentralized finance (DeFi) protocols attracted the most deal activity in April, with 12 funding rounds, according to CryptoRank. Blockchain services and artificial intelligence-linked crypto projects followed with eight rounds each.
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GSR emerges as most active investor of the month
Crypto market maker GSR’s VC wing was the most active investor of the past month, with four investment rounds, including a $3.5 million seed round in DeFi protocol Legend Trade on Wednesday, a $4 million seed round in DeFi protocol 3F on April 23, a $1 million pre-seed round in Enhanced Finance on April 9 and an undisclosed investment in real-world asset tokenization protocol Libeara on April 8.
Zurich-based digital asset-focused investment manager L1 Digital (L1D) was second with three investments, including a $5 million seed round in crypto exchange Exponent on Thursday, an $18 million strategic investment in infrastructure provider Squads on Wednesday and a $7.5 million Series A investment into blockchain services company Oh on April 8.
Most active investors by deal count for April, 2026. Source: Cryptorank
Y Combinator, Tether, Animoca Brands, landScape Capital, Coinbase Ventures and Kosmos Ventures also participated in three deals each during the month.
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