Billions of VC dollars have started flowing back into web3/crypto startups. Here are the hottest sectors getting the most attention right NOW.

Crypto funding hit 2021 levels again, but the money is laser-focused on just 5 sectors that most founders don't even know about. The complete playbook for positioning yourself where billions are flowing and standing out when everyone else looks identical.

Crypto funding hit 2021 levels again, but the money is laser-focused on just 5 sectors that most founders don't even know about. The complete playbook for positioning yourself where billions are flowing and standing out when everyone else looks identical.

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Andre Costa

Published on:

Aug 28, 2025

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Source: cointelegraph

“The crypto market is too risky to launch anything right now."

If you've ever heard this before or wondered this yourself...

The short answer is NO.

Because billions of VC dollars have started flowing back into crypto.

Investors are investing heavily in startups and founders who are creating products in the web3 space.

👉 Funding just hit its highest point since 2021.

But here's the catch.

That money isn't being sprayed around like it was in the last bull run.

Investors are more sophisticated now, and their investments are laser-focused on a few specific sectors.

So, if you're not in one of those sectors (or can't position yourself to fit the narrative), you're going to be invisible to VCs…

Which is exactly why I’m putting this guide together.

Because after working with 27+ web3 projects…

Helping them raise $51.9M+ with 2.3M+ users acquired…

I've seen exactly where the money is going.

And more importantly, what separates the projects that raise millions from the ones that get ignored…

So, without further ado, let’s cut to the chase…

Why every major crypto publication is talking about these same FIVE sectors right now?

I'm sure you're already aware of other sectors hitting it big right now.

AI crypto projects, memecoins, infrastructure plays…

There's money flowing into all kinds of categories.

But VCs are not just looking for the "hot sectors."

They're obsessing over the narratives with the clearest path to massive scale and utility.

So if you want to position yourself where the serious capital is flowing, here's exactly where VCs are doubling down right now...

1. Web3 Gaming → Funding jumped 94% in July alone.

Investors are over the whole "play-to-earn" thing.

They want games that people play because they're fun, not because they can make $3 a day grinding.

If you're building something that gets people hooked on the gameplay first, you're in a good spot.

But If you're just another token-farming simulator, you're wasting your time.

2. Bitcoin DeFi → $175M flowed in across 30+ deals this year.

Everyone knows Bitcoin holders have been sitting on their coins forever, earning nothing.

Now there's this huge push to give them ways to earn yield without losing Bitcoin's security.

The narrative is hot because it makes sense…why should your BTC just sit there when it could be working for you?

3. Real-World Assets & Tokenization → From real estate to invoices to random bulk commodities.

This is the "holy grail" play for VCs right now. Take something worth trillions in the real world, put it on blockchain, make it tradeable 24/7.

Whether it's apartment buildings or coffee futures, if you can tokenize it and prove there's real demand, investors see dollar signs.

4. Stablecoin Infrastructure → Moving billions daily, but the plumbing is still broken.

Stablecoins are everywhere, but moving them around is still slow, expensive, or risky.

Build better rails…faster settlements, lower fees, regulatory compliance, and institutions will pay big money for it. The volume is there; someone just needs to make it work better.

5. Ethereum Treasury Plays → Companies are loading up on ETH like it's their savings account.

Businesses are buying tons of ETH and calling themselves "treasury companies." It's a way to get crypto exposure while looking professional to traditional investors.

Simple strategy, but investors love the clean narrative.

Now that you know which sectors and narratives are likely to get YOU funded...

I can almost hear what you're thinking right now.

"Okay Andre, these sectors are hot. But there are already dozens of projects in each one. How am I supposed to compete with teams that raised $20M+ and have been building for years?"

Fair question.

Being in the right sector gets you in the door…But it doesn't guarantee you'll get the check.

VCs are seeing 50+ gaming pitches a week.

Hundreds of Bitcoin DeFi projects.

Everyone and their cousin is building "the next big tokenization platform."

So the question isn’t about "are you in the hottest sector?"

It’s about…

"What makes YOU the obvious choice when investors have 10 other options that look exactly the same?"

Because here's what I've learned after helping 19 projects raise funding this year...

The difference between getting funded and getting ignored isn't always your tech stack or your tokenomics…

It's how you position yourself to stand out in a sea of copycats.

So here are 5 ways the projects that raised millions this year separated themselves from everyone else...

Why some projects get funded in 2 weeks while others pitch for 8 months (and how to be among the FIRST ones)

👀 1. Narrative > Features

VCs don't invest in products

They invest in futures they can believe in. Your narrative should be something they can explain to their partners in 30 seconds. "We're building the Stripe for crypto payments" beats a 20-slide technical breakdown every time.

💸 2. Show them the receipts

Stop talking about what you're going to do. Show them what you've done.

Real users, actual revenue, and real partnerships. A screenshot of your dashboard with 1,000 active users beats any roadmap slide you can make.

💎 3. Don't be the "better version" of something else

VCs see 10 pitches a day, claiming to be "Uniswap but faster" or "OpenSea but cheaper."

If you're not first in your category, you'd better be 10x better in a way that matters. Small improvements don't get funded.

✋ 4. Remove every reason for them to say NO

Clean cap table… Proper legal structure… Security audits... Advisory board with recognizable names. The easier you make their decision, the faster they'll move. Most deals die from friction, not fundamentals.

🚀 5. Prove you can scale without breaking

Anyone can get 100 users. Show them your plan to get to 100,000 without hiring 500 people or burning through millions. VCs want to see efficiency, not just growth.

Key Takeaways for YOU…

Look, funding is back to where it was in 2021. But everything else is different now.

Investors aren't throwing money around like they used to.

They want to understand what you do in 10 seconds…

For example - "We're Stripe for Bitcoin" is simple and clear vs "We optimize cross-chain liquidity through algorithmic whatever.

Here's the bottom line…

If you're not in one of these hot sectors AND you can't position yourself as the obvious winner in your space, VCs won't even notice you exist.

But if you nail both of those things…

Your fundraising becomes 10x easier.

Now, if you're sitting there thinking "this makes sense, but I need help figuring out how to position my project for one of these sectors"...

I get it. That's exactly what I help teams with.

Drop me a message on Telegram or grab a 30-minute call, and I'll walk you through how to position your project to get VCs' attention.

Let's figure out your best angle.

Andre.

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