The first half of 2025 has seen a major rise in infrastructure fundraising worldwide, with project capital flowing into a wide range of sectors. New reports show that global infrastructure funds, including those targeting web3 and digital assets, have already raised billions in fresh commitments. Blockchain and crypto founders are tracking how these funds are being used to close investment gaps, push sustainable projects and fuel new onchain platforms. Which types of projects are leading the way this year? What regions and protocols are attracting the most capital, and how are traditional infrastructure deals merging with web3 innovations? This post breaks down what founders and VCs need to know about the surge in funds, the shifting focus of mid-market investors, and the growing mix of public and private finance driving infrastructure forward.

The Shift in Infrastructure Fundraising Dynamics

Capital flows into infrastructure have not only rebounded but fundamentally changed shape in 2025. Fundraising cycles are now longer, investor profiles are more mixed, and the hunt for emerging opportunities is reshaping the field for crypto and web3 innovators. What should founders watch as they chart a course for new deals or fundraising rounds this year?

Longer Fundraising Cycles and the Mega Fund Slowdown

Average fundraising timelines have stretched, with most funds now taking around 31 months to reach a final close compared to just under two years before. This shift is linked to a cooling of mega-fund dominance. Large, traditional players don’t absorb as much capital as they did even a year ago. In 2023, mega funds owned nearly two-thirds of the capital in this space—by 2024, that figure dropped to a third.

What’s filling the gap? Investors are seeking a wider mix of managers and strategies. This has created more room for smaller, specialized funds and new entrants, opening the door to teams focused on digital assets, data infrastructure, and sector-driven strategies.

Broader and More Diverse Investor Base

The field of investors in 2025 looks very different than it did a few years ago. While institutional capital still leads, a wave of family offices, retail investors, and even DAOs are taking up spots in new fundraising rounds. Evergreen funds—designed to offer higher liquidity and easier access—are becoming more popular, which helps pull in a larger, less traditional investor crowd.

This broader base creates more competition for founders seeking backing. Startups must show a clear edge, as well as an ability to attract both web3-native and mainstream capital. Are you tailoring your pitch to today’s wider audience?

Digital Infrastructure: The New Hotspot

Digital infrastructure, especially data centers, stands front and center. This spring, data center projects claimed 25% of all sector-specific capital raised in infrastructure. Skyrocketing demand for AI and cloud computing has turned data capacity, connectivity, and energy efficiency into top priorities.

But it’s not all smooth sailing. Data capacity is expanding rapidly—a 34% jump year-over-year—yet vacancy rates have hit historic lows. Founders in this space are racing to secure sites, equipment, and skilled teams as deals close fast. How will your project stand out with so many chasing the same demand?

Focus on Mid-Market and Specialized Plays

The shift away from mega funds has made mid-market deals more attractive, especially to VCs and fund managers looking to avoid crowded, expensive transactions. Investors see value in local connections, experienced build teams, and projects that avoid the “big fish” competition.

Expect more winning deals to come from networks with boots on the ground and expertise in building resilient, efficient assets—whether in energy, connectivity, or logistics. This development overlaps with the rising tide of web3: technical teams with real market experience have a chance to lead the next set of sector-specific raises.

Macro Trends: Policy, Inflation, and Sector Shifts

Founders must now juggle more variables than in previous years:

  • Policy changes and trade tensions are upending energy and transportation plans. For example, some renewable and battery plants face delays or cancellations due to tariffs.
  • Inflation concerns pressure both investors and project leads to seek assets that can act as inflation hedges—think toll infrastructure, stable data revenue, or energy with predictable pricing.
  • European growth stands out, thanks to regulatory pushes like the EU Green Deal that back digital and sustainable assets with policy support.

Smart teams are watching these dynamics closely, using nimble strategies to keep capital flowing and projects moving forward.

How is your project positioned to respond to these shifts? Are you working with managers who understand today’s risks? Those who adapt quickly are finding the best opportunities in a more crowded, complex fundraising environment.

Major Infrastructure Sectors Attracting Capital in 2025

The first half of 2025 has been packed with aggressive fundraising and deal flows across core infrastructure sectors. As global investors seek stable returns and long-term growth, certain areas are drawing a high share of fresh capital. Let’s break down which segments have stood out—both from a mainstream and web3 perspective—so far this year.

Clean Energy and Renewable Power

This year has set new records for clean-energy fundraising. Solar, wind, and battery storage projects have claimed a big slice of global infrastructure funds, with total capital invested in renewables outpacing previous years. The US Inflation Reduction Act (IRA) continues to catalyze massive utility-scale builds and public-private partnerships, prompting new gigawatt-scale solar farms and record-breaking wind deployments from Texas to Japan.

Battery storage is surging, attracting both traditional funds and web3-aligned “energy tokenization” startups. Capital is going into:

  • Grid-scale lithium and sodium battery projects
  • Decentralized storage networks
  • Peer-to-peer energy platforms for surplus trade

The intersection of blockchain and energy is real. Platforms now track emissions and carbon credits in real time, making carbon accounting transparent onchain. Other projects enable onchain energy trading, allowing users in solar-heavy areas to sell grid surplus without friction. Web3 isn’t just raising funds here—it’s building new rules for how green energy gets measured and traded.

Curious about how blockchain is improving trust in carbon offsets or boosting cross-border energy markets? That’s the direction the capital is heading.

Digital Infrastructure: Data Centers and AI

The digital sector continues to pull in large sums, with data centers at the front of the queue. Fuelled by AI’s exponential growth and cloud demand, annual investments in data infrastructure are booming. Early estimates put data center funding at over $400 billion for 2025 alone. It’s no surprise: every chatbot, enterprise model, and decentralized protocol needs somewhere to run.

The rush is on for:

  • New “AI-first” data centers with liquid cooling and machine-learning optimization
  • Colocation facilities designed for high-density GPU compute
  • Geographic expansion into regions with stable power and fiber access

Energy efficiency is a must-have, as hyperscale AI workloads push power use skyward. Investors want projects that pair low-emission power with maximum throughput.

Web3 founders are making their mark here too. Blockchain-based networks for decentralized storage (such as Filecoin or Arweave) and distributed compute bring alternatives to traditional, centralized hosting. New projects are also using onchain proofs to validate data access and integrity, keeping customer records secure while providing transparency for auditors.

Are decentralized data centers really scalable, and can they meet the security standards that big enterprises expect? The pace of capital suggests investors believe the answer is yes.

Transport, LNG, and Next-Gen Utilities

Investment in traditional sectors hasn’t slowed down—if anything, funding for transport and natural gas is up. Growing air traffic, surging logistics demand, and supply chain stressors have prompted major commitments to airport upgrades, port expansion, and logistics automation. Public-private partnerships and global funds have backed:

  • Airport and port modernization projects in Asia, Europe, and the Americas
  • LNG terminals, supporting energy security and hybrid projects mixing gas and renewables
  • Utility projects focused on fire prevention, especially in regions at high wildfire risk

Blockchain and crypto are showing up in these sectors too. Projects are popping up to deliver:

  • Supply-chain transparency for shipping, with smart contracts tracking every document and container
  • IoT-powered sensors and data oracles recording infrastructure health and usage stats
  • Automated payments and settlements for cross-border LNG or utility transactions

Can crypto-backed supply chain tools save costs for ports, or will smart infrastructure rely on onchain platforms for automated insurance payouts when utility outages strike? These are just a few of the questions front-of-mind for investors in 2025.

With capital flowing at historic rates into these key segments, blockchain founders and web3 investors have a rare window to bridge traditional infrastructure with programmable, global networks—unlocking new value streams where old and new tech collide.

Spotlight: Emerging Managers and the Lower Middle Market

A fresh wave of energy is reviving infrastructure fundraising in 2025, and much of it is coming from emerging managers operating in the lower middle market. These teams, often seasoned pros spinning out from industry giants, are not just filling gaps left by mega funds—they’re crafting deals with speed, local know-how, and a clear vision. In today’s funding climate, smaller funds with sharp sector focus can outmaneuver rivals and snap up attractive investments well before slower, larger players arrive. Why are VCs, family offices, and web3 founders watching these managers so closely this year?

Who Are Today’s Emerging Managers?

Emerging managers are typically running their first or second fund, often after years inside large asset managers. In 2025, many of these new faces come with deep experience from firms like Macquarie or BlackRock and networks that cross over into tech, energy, and digital infrastructure. You’ll also spot industry veterans launching sector-specific funds in renewables, digital assets, and sustainable transport—not just chasing buzzwords but building real-world platforms.

  • The lower middle market they target includes infrastructure projects valued below $500 million, occupying the sweet spot between pure startups and mega portfolios.
  • These funds often back digital projects (think: small data centers, local grid upgrades), battery storage, and circular economy ventures.

Smart founders and allocators are asking: Can these nimble funds bring innovation faster, and will their playbook beat out larger, slower-moving funds year after year?

Why the Lower Middle Market Is Ripe for Innovation

The lower middle market is less crowded compared to the big-cap arena. Smaller deals attract less big-money competition, making it easier to uncover value and drive outsized returns. The operational focus is often more hands-on, with managers working closely with project teams, city officials, and local partners. As a result, these projects tend to be:

  • Anchored by long-term contracts with inflation protection.
  • Supported by conservative debt, lowering risk.
  • Focused on stable, repeatable revenue from infrastructure essentials.

Think of it as real-time infrastructure hacking: smaller teams, faster pivots, and more room for creative financing. For blockchain founders, this brings opportunities to layer on web3 tech and introduce token-driven rewards, provenance, or DAO-backed governance to projects that might otherwise fly under radar.

Sector Trends Grabbing Attention

Emerging managers are targeting clear growth trends propelled by digitalization and sustainability. Founders looking for capital in 2025 are seeing special attention on:

  • Neighborhood-scale renewable energy: Community solar and battery projects can get funded and built faster with local allies.
  • Edge data centers and micro-connectivity: As AI pushes demand to new cities, smaller facilities beat giant server warehouses.
  • Circular economy: Infrastructure to recycle, reuse, and cut waste is top-of-mind for VCs chasing both returns and impact.

There’s also a push into water management, waste infrastructure, and logistics—sectors where mid-size deals can deliver solid cash flows buoyed by new regulations and strong public support.

What Founders and VCs Should Watch

With the surge in emerging managers, a few questions matter more than ever:

  • Does your project fit with funds hunting sub-$500 million deals?
  • How can you make your infrastructure plan stand out when managers prioritize hands-on, operational improvements?
  • Are you helping solve real regulatory or climate pressures, making your proposal attractive to funds that balance profit and impact?
  • If going the web3 route, does your team bring both deep infrastructure chops and the ability to deliver blockchain-enabled solutions for transparency or smart contracts?

In 2025, the winning ingredient is the ability to mix traditional build expertise with next-generation tech. New managers in the lower middle market are ready to take bigger risks—and if you’re a founder or allocator willing to bring something fresh, the door is open for strong partnerships.

For anyone tracking deal flow, these managers are a proving ground. The projects they raise, the way they structure deals, and the speed at which they move will shape where capital lands next.

What Can Crypto and Web3 Founders Learn?

Early 2025 is shaping up to be a make-or-break period for crypto and web3 founders looking to build, scale, or raise capital for digital infrastructure projects. New technologies, evolving investor priorities, and changing market conditions all play into what makes a project successful—or what causes it to stall out. What lessons stand out as the most actionable for founders this year? Here’s a look at what’s working, what investors expect, and the kinds of strategies that separate fast movers from the rest.

Technical Breadth Is No Longer Optional

Web3 projects raising in 2025 need more than a single-chain, one-toolkit mindset. Investors now expect teams to:

  • Show proficiency with major programming languages such as Solidity, Rust, and Go.
  • Demonstrate smart contract audit-readiness—security lapses are dealbreakers.
  • Support interoperability across multiple chains by default, not as a roadmap item.

Zero-knowledge proofs and rollup technologies have quickly moved from hot topics to core requirements for scaling. Projects that bring privacy and high throughput together—think zk-rollups and modular architectures—are seeing outsized interest.

Are your engineers constantly upskilling? Is your tech stack able to pivot as standards change? The teams who treat technical breadth as foundational—not just an add-on—stand out to both institutional and retail backers.

AI and Automation Raise the Bar

AI-driven tools are now threaded through every stage of the web3 developer journey. Security audits, automated contract testing, and even cross-chain deployments are getting faster, smarter, and less prone to human error thanks to AI. This means:

  • Faster iteration cycles help startups pivot or patch weaknesses before launch.
  • Market prediction and automated governance analytics offer sharper decision support.
  • Investors ask how you use AI—not just if you’re "exploring it" casually.

Are you using AI for automated bug detection, onboarding optimization, or real-time market surveillance? Top projects showcase their AI integration—not as hype, but as a practical advantage in security and scale.

Interoperability and User Experience Win Deals

In 2025, cross-chain friction is no longer excusable. Nearly every serious project supports protocol-agnostic frameworks, enabling assets and smart contracts to move smoothly between ecosystems. Smart founders invest early in:

  • Plug-and-play modular protocols
  • Pre-audited contract standards to reduce risk
  • User onboarding that feels familiar and quick, thanks to social sign-in features and compliance automation

Ask yourself: how quickly can new users or partners interact with your platform? Can businesses plug you into their existing stack without technical hurdles? If your project is not easy for both developers and non-technical users, you’re playing catch-up.

Hiring and Team Building Influence Investor Appetite

There’s a hiring boom in web3 right now, with salaries for blockchain engineers and protocol specialists climbing rapidly. Founders need to attract top talent with a mix of technical skills—blockchain, cryptography, UX/UI—and the drive to learn as new standards emerge. Key takeaways here:

  • Multidisciplinary teams outperform siloed, single-skill groups.
  • Compensation packages now compete with big tech, especially in North America and Europe.
  • Investors often ask: who’s your lead developer, and how deep is your technical bench?

Are you investing in ongoing education for your developers? Can your team demo not just what you’ve built, but how quickly you can update and evolve as markets demand?

Networking and Community Remain Essential

Despite all the tech advancement, people still drive web3. Top founders attend industry conferences and online summits (like ETHDenver, Paris Blockchain Week, and various regional events). These aren’t just for “buzz”—they’re built into the playbook for raising and winning deals in 2025. Active participation means:

  • Gaining inside knowledge on regulatory trends and compliance shifts
  • Meeting strategic partners for integrations or large-scale pilots
  • Building credibility with investors paying attention to who’s visible in the space

How engaged is your project at a global and local level? Do you have regular appearances at high-impact events, or are you missing in action when opportunities arise? Visibility drives trust.

Continuous Learning Keeps Teams Relevant

With new frameworks and compliance rules rolling out almost monthly, founders must make learning a habit. This means team-wide workshops on smart contracts, security, DeFi, and DAOs—as well as staying ready to shift directions if regulations or standards change.

  • Specialized web3 courses and rapid upskilling are now standard practice.
  • The most credible projects show track records of quick adoption—not just claims of “being early.”

Is your team plugged into ongoing training? Are you seeking advice from experts outside your immediate group to challenge assumptions?

In the fast-moving web3 sector, those who learn fastest and build with purpose will not just survive, but set the pace in 2025 fundraising.

Conclusion

This year’s surge in infrastructure fundraising signals a new order—digital and green projects are taking the lead, powered by diverse investors who expect technical depth, interoperability, and clear impact. Sectors like data infrastructure, renewables, and logistics are seeing record inflows, often shaped by policy shifts and the global demand for smart, connected systems.

Crypto and web3 founders have more pathways to funding, but greater scrutiny too. To thrive, founders need to be proactive: Is your project meeting real market needs? Have you built in flexibility to pivot as new regulations or tech standards arrive? How will your team stay visible and skillful as the field advances?

Now is the time to assess where your project can fit. Are you ready to build with new partners, attract emerging managers, or unlock value by bridging traditional assets with web3 platforms? The strongest projects will not only adapt but help set the pace.

Thank you for reading and supporting OnchainRider. Where do you see your infrastructure idea fitting into this new wave? Share your thoughts below or reach out to connect—your feedback shapes what we cover next.