Venture capital investment in Europe held steady in Q3 last year, with total funding reaching $17.4 billion, up from $15.2 billion in Q2, according to KPMG data.
Overall deal numbers were low, but large transactions shaped the market, particularly in AI, fintech, and crypto. UK-based crypto and cloud infrastructure firm PS Miner raised $350 million, showing that investors are still interested in digital assets.
Nicole Lowe, UK Head of Emerging Giants at KPMG in the UK, said, “The crypto and digital assets space continues to grow in interest in the UK — and elsewhere. Specifically, stablecoins have been a really hot topic of conversation over the last six to twelve months or so from a UK perspective. Draft legislation from a crypto perspective is expected to land in 2026, so I think that will really drive a renewed interest in this space.”
UK venture capital also increased to $6.2 billion in Q3’25, rebounding after a weaker second quarter. Rapyd Financial raised $500 million, and PS Miner secured $350 million. Conor Moore, Global Head of KPMG Private Enterprise, said, “The cautious optimism we saw last quarter has shifted to genuine optimism. Companies that IPO’d earlier are performing well, and more recent listings have also delivered strong results. Overall, the outlook feels very positive.”
What Factors Are Influencing Investment Decisions?
Investors are taking more time to examine deals because of macroeconomic and geopolitical uncertainty. Startups are focused on stretching their cash and showing clear paths to profitability. European governments are supporting critical infrastructure, such as semiconductor manufacturing, to keep investment and innovation in the region.
Cleantech startups also received large funding rounds. Iceland-based aquaculture company Laxey raised $183 million, Germany’s 1KOMMAS got $175 million, and Sweden’s Aira secured $174 million. These investments show that sectors tied to energy transition continue to attract venture capital.
In the Nordics, tech companies raised sizeable amounts. Finland-based IQM received $320 million for quantum computing, and Sweden’s Aira obtained $174 million for heat pump development. Even in quieter deal periods, tech and crypto projects are still drawing attention.
What Is Said To Happen With Crypto Investment In 2026?
The UK’s crypto sector is expected to grow as new legislation takes effect in 2026. Stablecoins and other digital asset projects could see more funding. Moore added, “Sector-wise, little has changed — AI remains the hottest vertical, defensetech continues to attract strong interest, and fintech has had an excellent year, well beyond crypto. Looking ahead to Q4’25 and into 2025, all indicators point to continued strength.”
With investors continuing cautious but targeted financing, crypto and digital assets may become a larger part of European venture portfolios once regulations offer clarity and confidence.
This data comes from KMPG’s Q3 Venture Pulse Report. Not much was mentioned regarding crypto in the Q4 report, which raises the question of where exactly crypto is headed this year.
For now, let’s have a look at which VCs are actively investing in crypto…
Innovating Capital
Founded in 2017, Innovating Capital is a deep-technology and digital-asset venture firm backing the next generation of crypto and Web3 infrastructure. The firm manages approximately $220M in committed capital and invests from Seed through Series A in blockchain protocols, decentralised finance, tokenised credit, and the tooling that sits beneath institutional adoption of digital assets.
Operating with a “first‑to‑find” mentality, Innovating Capital is highly thesis‑driven and sources the vast majority of its nearly 50 investments proactively, rather than waiting on inbound deal flow. The team focuses on markets that demand deep technical expertise, including crypto and Web3 infrastructure, cybersecurity, enterprise software, and AI, and is recognised for a hands-on, outbound model that reserves significant follow‑on capital to support winning companies through multiple rounds.
In crypto specifically, Innovating Capital has been early to many of the ecosystem’s core building blocks, with portfolio exposure across assets and infrastructure such as Bitcoin, Ethereum, Solana, Chainlink, Uniswap, Injective, and Archblock, alongside real‑world-asset and tokenisation plays like Pineapple Financial. Founder and General Partner Anthony Georgiades leads the team at Innovating Capital and also operates as a blockchain builder himself, as co‑founder and CEO of Lumera Protocol and a board member at Pineapple Financial, giving the firm an uncommon investor‑operator vantage point on how institutional crypto markets are evolving across cycles.
AlbionVC
AlbionVC is a leading venture capital firm managing approximately £1 billion, with a 30-year track record of backing category-defining B2B software, deeptech and healthtech companies. In the digital assets sector, AlbionVC distinguishes itself through a high-conviction thesis focused on institutional-grade infrastructure and the critical rails bridging traditional finance and the crypto economy.
Led by Partner Jay Wilson, the firm avoids consumer trends to target B2B companies solving the sector’s hardest problems: compliance, risk management, and banking access. This strategy is exemplified by their portfolio, including Elliptic, OpenTrade, and Agio Ratings.
They view the UK’s regulatory environment and financial history as a unique launchpad for global leadership in the space, specifically supporting visionary founders who are building the trust and transparency required for mass institutional adoption.
Improbable
Founded by Herman Narula, one of the UK’s most prominent and successful deep-tech entrepreneurs, Improbable invests in and creates startups at the forefront of crypto, blockchain and AI. Backed by leading investors such as A16z and SoftBank, the company focuses on solving complex technical challenges by combining capital with deep operational support, shared infrastructure and experienced leadership in the emerging crypto/blockchain sector. Rather than acting as a passive investor, Improbable works alongside founders to build, launch and scale ambitious ventures in this space, while ensuring long-term control and intellectual property remain with the companies themselves.
Its portfolio includes a growing number of crypto-native ventures, such as Somnia, [SOMI], a high-performance Layer-1 blockchain engineered for real-time, Otomato, a DeFi assistant, alongside other infrastructure platforms powering decentralised ecosystems. Improbable’s model is designed to accelerate innovation and mainstream adoption of crypto technologies. Crypto and DeFi is a space Improbable is going harder on in 2026 as it looks for new investments.
Foresight Ventures
Foresight Ventures is a global, crypto-native venture capital firm investing across the cryptocurrency, blockchain, and broader Web3 ecosystem. Foresight Ventures connects the best of Eastern and Western crypto ecosystems through research-driven approach and strategic presence in the US and Singapore. The firm backs both early-stage and growth-stage companies building core infrastructure, decentralised finance (DeFi) protocols, digital asset platforms, blockchain gaming, NFTs, and emerging consumer applications shaping the next generation of the internet.
Foresight Ventures invests across a wide range of crypto and Web3 sectors, focusing on projects with strong technical foundations, clear real-world use cases, and scalable business models. Its blockchain infrastructure investments include Layer-1 and Layer-2 networks, interoperability protocols, developer tooling, and security solutions. In decentralised finance, the firm supports lending, trading, derivatives, asset management, and on-chain financial services.
Foresight Ventures is closely linked to digital asset research and media initiatives, positioning it not only as an investor but as an active participant in the industry’s development. With investments across Asia, Europe, and North America, the firm maintains a global outlook, driven by the belief that blockchain technology will fundamentally reshape financial systems and digital infrastructure worldwide.
