CMT Digital Secures $136 Million Fund to Support Crypto Startups

CMT Digital has successfully closed a $136 million investment fund aimed at supporting innovative infrastructure and decentralized finance (DeFi) projects.

Key Takeaways

CMT Digital has raised a total of $136 million for its Fund IV.
The fund will primarily support early-stage startups in decentralized finance and infrastructure.
CMT Digital has experience in navigating the volatile crypto market since investing in 2016.
Despite a challenging funding environment, investor interest remains in crypto ventures.

CMT Digital raises $136 million to fund crypto startups.

On November 5, Chicago-based crypto venture firm CMT Digital announced the final closure of its fourth investment fund, Fund IV, totaling $136 million. This capital will be allocated to early-stage startups focusing on essential infrastructure and DeFi protocols. Partner Sam Hallene emphasized the diverse backing from family offices and institutional investors, highlighting a continued interest in digital asset ventures, albeit with more caution.

Navigating Market Cycles

CMT Group's investment strategy has evolved over nearly a decade. The firm entered the digital asset space in 2016 and has weathered various boom-and-bust cycles, resulting in a diverse portfolio of over 200 investments. The firm leverages its parent company's 25-year legacy in quantitative trading, using expert research to pinpoint long-lasting infrastructure amidst fleeting trends.

CMT Group's first fund set the stage by investing in access points to the crypto ecosystem, including prominent platforms like Coinbase and BitGo. The second fund focused more on core on-chain infrastructure, investing in critical data and financial services through companies such as Consensys and dYdX.

The third fund marked a strategic shift towards enhancing utility beyond traditional finance, supporting projects related to payments and consumer applications—including Ethena and Sky Mavis, the creator of Axie Infinity. Fund IV aims to "re-architect finance" by investing in startups that are creating blockchain-based infrastructure for global markets.

Funding Landscape Challenges

CMT Digital's fundraising comes at a time when the crypto venture capital environment is notably tempered. According to Galaxy Digital’s Q2 2025 report, crypto startups received only $1.97 billion in venture funding from 378 deals, reflecting a significant 59% drop compared to the previous quarter. This makes Q2 the second-weakest period for crypto venture activity since late 2020.

Even considering a major $2 billion investment from a sovereign-linked entity in Binance earlier this year, venture activity remains significantly lower than previous periods. For perspective, Q1 2022 alone attracted over $13 billion in new investments within the sector.