Venture funding has most definitely rebounded since the 2022 correction, but there’s a sharp divide between who’s getting funding and who’s not.
That was the overarching theme from our third-quarter market reports, which showed that global startup funding in Q3 totaled $97 billion, marking only the fourth quarter above $90 billion since Q3 2022.
But the funding surge this time is also much, much more concentrated — namely in outsized rounds for AI companies.
With that, let’s take a look at the charts that illustrate the major private-market and startup funding themes as we head into the final quarter of 2025.
AI funding continues to drive venture growth
Nearly half — 46% — of startup funding globally in Q3 went to AI companies, Crunchbase data shows. Almost a third went to a single company: Anthropic, which raised $13 billion last quarter.
Even with an astonishing $45 billion going to artificial intelligence startups in Q3, it was only the third-highest quarter on record for AI funding, with Q4 2024 and Q1 2025 each clocking in higher.
Megarounds gobble up lion’s share
It shouldn’t come as too much of a surprise that AI has also skewed investment heavily toward megarounds, which we define as funding deals of $100 million or more.
The percentage of overall funding going into such deals hit a record high this year, with an astonishing 60% of global and 70% of U.S. venture capital going to $100 million-plus rounds, per Crunchbase data.
Even with several months left in the year, it also seems plausible that the total dollars going into such deals will match or top what we saw in 2021, which marked a peak for startup funding not scaled before or since.
The difference? Back then, startup dollars were widely distributed, going to a whole host of sectors — from food tech to health tech to robotics — and to early-stage, late-stage and in-between companies alike.
As megarounds have increased, seed deals have declined.
The number of seed deals has shown a steady downward trend in recent quarters, Crunchbase data shows, even as total dollars invested at the stage has stayed relatively steady. That indicates that while seed deals are growing larger, they’re also harder to come by.
Early-stage funding has essentially flatlined, despite larger rounds to companies working on robotics, biotech, AI and other technologies.
The AI haves and have-nots
AI has enthralled investors for the past three years.
Still, other sectors that benefit heavily from AI-driven automation are seeing a surge in investment. Perhaps most notable is legal tech, which hit an all-time high last month on the back of large rounds for companies promising to automate much of the drudgery of the profession.
Funding for Asia-based startups rose sequentially in the third quarter, boosted by a handful of hardtech-focused megarounds.
European startups raised $13.1 billion across more than 1,000 deals in Q3, flat quarter over quarter but up 22% year over year. Early-stage investment was particularly strong, and the region benefited from the excitement around Klarna’s long-awaited IPO.
In Latin America, Brazil pushed Mexico out of the top spot to retake its crown as the region’s largest funding recipient.
Looking ahead
The increasing concentration of capital into a small cadre of large AI companies — not to mention the interconnectedness of those deals — begs some obvious questions. Are we in a bubble? And given that nearly half of venture capital in recent years has been tied up in AI, what happens to the startup ecosystem if or when it pops?
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According to a report from Bleeping Computer, a zero-day was recently used to target a variety of entities by distributing malware. Reported targets include Russian media outlets, educational institutions, and financial institutions. The malware, known as ‘Dante,’ is said to be a piece of commercial spyware. It was also reportedly created by Memento Labs, an Italian company formerly known as Hacker Team.
The Chrome exploit that was distributing malware was discovered by Kaspersky
Dante was initially discovered back in March of this year, as malware used as part of an attack called Operation ForumTroll that targeted Russian organizations. However, it wasn’t until recently that Kaspersky shared more intricate details of the malware and its inner workings.
As noted by Kaspersky, the initial point of infection from this malware occurred when users clicked a link in a phishing email. Once at the malicious website, the victims were “verified” and then the exploit was executed.
According to reports, these phishing emails were sending out invites to Russian organizations to attend the Primakov Readings forum.
Kaspersky further details that the Dante software, as well as other tools used in Operation ForumTroll, were developed by Memento Labs, linking the company to these attacks in some form. It’s worth noting that this company isn’t 100% confirmed to be behind the attacks. As noted by Bleeping Computer, there is a possibility that someone else was behind the zero-day attack and distribution of the malware.
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Cybersecurity in 2025 is not just the ability to ensure that hackers stay away. It is about securing massive networks, confidential data and millions of online interactions daily that make businesses alive. The world has never been more connected through global enterprise systems and that translates to more entry points to intruders. The 2025 Cost of a Data Breach Report by IBM states that the average breach now costs an organization and its visitors an average of 5.6 million dollars or approximately 15 percent more than it was only two years ago in 2023. That is a definite sign of one thing, that is, traditional methodologies are no longer enough.
This is where the blockchain-based cybersecurity protocols are starting gaining attention. Originally serving as the basis of cryptocurrencies, blockchain is becoming one of the most powerful barriers to enterprise systems. Blockchain is equally powerful in the cybersecurity domain because of the same characteristics that render it the optimal choice in the digital currency industry, transparency, decentralization, and immutability of data.
In this article, we shall endeavor to articulate clearly how blockchain will play its role in security to the large organizations. We are going to cover some of the definitions in the field of cybersecurity that will relate to blockchain, why cybersecurity is becoming such a large portion of 2025, and how it will be used by organizations to mitigate cybersecurity threats.
What Is Blockchain-Based Cybersecurity for Enterprises?
Blockchain can sound like a complicated word. But in simple terms, it means a digital record book that no one can secretly change. All transactions or actions recorded are checked and stored by many different computers at the same time. Even though one computer may be compromised, the “truth” is still safe among the other stored copies.
This is great for organizations. Large organizations run massive IT systems that have thousands of users, partners, and vendors accessing data. They hold financial records, customer data, supply chain documents, etc. If a hacker gets access to a centralized database, they can change or steal the information very easily. But with a blockchain, the control is distributed across the network, making it much harder for a hacker, especially in large organizations.
In a blockchain cybersecurity model, data can be broken into blocks and shared across the network of nodes (virtual), where the nodes will verify the data before being added to the blockchain. Once added, it is not possible to delete or modify it in secret. This makes it perfect for applications that require audit trails, integrity and identity management.
While blockchain is not an alternative to firewalls or antivirus software, it offers additional security similar to the solid base of a trusted solution that assures the data cannot be modified in secret. For example, a company could use blockchain to record every employee login and file access. If a hacker tries to fake an entry, the other nodes will notice the mismatch immediately.
Why Enterprises Are Turning to Blockchain for Cybersecurity in 2025
In 2025, there have already been digital attacks that have never been witnessed. In another instance, Microsoft declared in April 2025 that over 160,000 ransomware assaults took place every day, a rise of 40 percent compared to 2024. In the meantime, Gartner predicts that almost 68 percent of large enterprises will include blockchain as part of its security architecture by 2026.
Businesses are seeking blockchain since it eliminates a significant amount of historic burdens of possessing a digital security feature. The conventional cybersecurity functionality is based on a central database and central administrator. This implies that; in case the central administrator is compromised, the whole system may be compromised. Blockchain is not operated in this manner. No single central administrator can change or manipulate records in secrecy.
Here is a simple comparison that shows why many enterprises are shifting to blockchain-based protocols:
Feature
Traditional Cybersecurity
Blockchain-Based Cybersecurity
Data integrity
Centralized logs that can be changed
Distributed ledger, tamper-proof
Single point of failure
High risk if central server is hacked
Very low, multiple verifying nodes
Audit trail
Often incomplete
Transparent, immutable record
Deployment complexity
Easier setup but limited trust
Needs expertise but stronger trust
Cost trend (2025)
Rising due to more threats
Falling with automation and shared ledgers
As global regulations get tighter, enterprises also need systems that can prove they followed rules correctly. For instance, the European Union’s Digital Resilience Act of 2025 now requires financial firms to keep verifiable digital audit trails. Blockchain helps meet such requirements automatically because every transaction is recorded forever.
Another major reason is insider threats. In a 2025 Verizon Data Breach Report, 27 percent of all corporate breaches came from inside the company. Blockchain helps fix this problem by giving everyone a transparent log of who did what and when.
Key Blockchain Protocols and Technologies Used in Enterprise Cybersecurity
There are two main types of blockchains – permissionless and permissioned. A permissionless blockchain provides access to anyone publicly, for example, Bitcoin or Ethereum. A permissioned blockchain is typically used internally to an organization that only provides access to users with permission. Many enterprises tend to favor permissioned chains because of the security, compliance, and data control.
Let’s take a look at some of the form classes of blockchain technologies that are being used in enterprise cybersecurity today.
Smart contracts are programs that automatically run on the blockchain. A smart contract can execute the rules that are coded in the contract without an administrator needing to take action. For example, the smart contract would not permit an unauthorized user to access the information until an authorized digital key is used. The benefit of smart contracts is that they remove the human from the access granting process as a result limiting human error.
Identity and Access Management (IAM) with Blockchain
Traditional identity systems use central databases, which can be hacked or misused. Blockchain makes identity management decentralized. Each employee or partner gets a cryptographic identity stored on the blockchain. Access permissions can be verified instantly without sending personal data across multiple systems.
Threat Intelligence Sharing on Distributed Ledgers
Many enterprises face the same types of threats, but they rarely share that information in real time. Blockchain allows companies to share verified threat data securely without exposing sensitive details. IBM’s 2025 Enterprise Security Survey found that blockchain-based information sharing cut response time to new cyber attacks by 32 percent across participating companies.
Protocol / Technology
Use Case in Enterprise Security
Main Benefit
Permissioned Blockchain
Secure internal records and data sharing
Controlled access with strong audit trail
Smart Contracts
Automated compliance and access control
No manual errors or delays
Blockchain-IoT Networks
Secure connected devices in factories
Device trust and tamper detection
Decentralized IAM Systems
Employee verification and login
Reduces credential theft
Threat Intelligence Ledger
Global cyber threat data sharing
Real-time awareness and faster defense
How to Design and Deploy Blockchain-Based Cybersecurity Protocols in an Enterprise
Designing a blockchain-based security system takes planning. Enterprises must figure out where blockchain fits best in their cybersecurity setup. It should not replace every system, but rather add strength to the areas that need higher trust, like logs, identity, and access.
A good plan usually moves in stages.
Assessing Cybersecurity Maturity and Blockchain Readiness
Enterprises first need to check their current cybersecurity setup. Some already have strong monitoring systems and access control, others still depend on older tools. Blockchain works best when the company already understands where its weak spots are.
Designing Governance and Access Control
Blockchain does not manage itself. There must be rules about who can join the chain, who can approve updates, and how audits are done. Governance is very important here. If governance is weak, even a strong blockchain system can become unreliable.
Integration with Existing Systems
Enterprises use many other systems like cloud services, databases, and IoT devices. The blockchain layer must work with all of them. This is where APIs and middleware tools come in. They connect the blockchain with normal IT tools.
Testing and Auditing
Once deployed, the new blockchain protocol should be tested under real conditions. Security teams need to simulate attacks and watch how the system reacts. Regular audits should be done to check smart contracts and node performance.
Here is a table that explains the general process:
Phase
Key Tasks
Important Considerations
Phase 1: Planning
Identify data and assets that need blockchain protection
Check data sensitivity and regulations
Phase 2: Design
Choose blockchain type and create smart contracts
Think about scalability and vendor risk
Phase 3: Deployment
Install nodes and connect to IT systems
Staff training and system testing
Phase 4: Monitoring
Watch logs and performance on the chain
Make sure data is synced and secure
The companies that succeed in deploying blockchain for cybersecurity often start small. They begin with one department, like finance or HR, and then expand after proving the results. This gradual rollout helps avoid big technical shocks.
Real-World Use Cases of Blockchain Cybersecurity for Enterprises
By 2025, many global companies already started to use blockchain to protect data. For example, Walmart uses blockchain to secure its supply chain data and verify product origins. Siemens Energy uses blockchain to protect industrial control systems and detect fake device signals. Mastercard has been developing a blockchain framework to manage digital identities and reduce fraud in payment systems.
These real-world examples show how blockchain protocols are not just theory anymore. They are working tools.
Use Case
Industry
Benefits of Blockchain Security
Digital Identity Verification
Finance / Insurance
Lower identity theft and fraud
Supply Chain Data Integrity
Retail / Manufacturing
Prevents tampered records and improves traceability
IIoT Device Authentication
Industrial / Utilities
Protects machine-to-machine communication
Secure Document Exchange
Legal / Healthcare
Reduces leaks of private data
Inter-Company Audits
Banking / IT
Enables transparent, shared audit logs
Each of these use cases solves a specific pain point that traditional security tools struggled with for years. For instance, in industrial IoT networks, devices often communicate without human supervision. Hackers can easily fake a signal and trick systems. Blockchain creates a shared log of all signals and commands. That means even if one device sends false data, others will immediately see the mismatch and stop it from spreading.
In the financial sector, blockchain-based identity systems are helping banks reduce fraudulent applications. A shared digital identity ledger means once a person’s ID is verified by one institution, others can trust it without redoing all checks. This saves both time and cost while improving customer security.
Challenges and Risks When Using Blockchain for Enterprise Cybersecurity
Even though blockchain adds strong layers of protection, it also comes with some new problems. Enterprises must be careful during deployment. Many companies in 2025 found that using blockchain for cybersecurity is not as simple as turning on a switch. It needs planning, training, and coordination.
One of the biggest challenges is integration with older systems. Many large organizations still run software from ten or even fifteen years ago. These systems were never built to connect with distributed ledgers. So when blockchain is added on top, it can create technical issues or data delays.
Another major issue is governance. A blockchain network has many participants. If there is no clear structure on who approves transactions or who maintains the nodes, it can quickly become messy. Without good governance, even the most secure network can fail.
Smart contracts also come with code vulnerabilities. In 2024, over $2.1 billion was lost globally due to faulty or hacked smart contracts (Chainalysis 2025 report). A single programming error can create an entry point for attackers.
Then there is regulation. Legislations regarding blockchain are in their infancy. To illustrate, the National Data Security Framework 2025, which was launched in the U.S., has new reporting requirements of decentralized systems. Now enterprises have to demonstrate the flow of data in their blockchain networks.
Lastly, another threat is quantum computing. The cryptographic systems in the present could soon be broken by quantum algorithms. Although big-scale quantum attack is not occurring as yet, cybersecurity professionals already advise the implementation of post-quantum cryptography within blockchain applications.
Conclusion
Blockchain-based cybersecurity will transform the process of enterprise defense in the digital environment. In a blockchain, trust is encouraged by all members in the network where an organization usually depends on one system or administrator (or both) to keep the trust intact. It might not be short-term and might not be cost effective but it will be long term. In 2025, blockchain will be an enterprise security bargain, providing audit trails that are immutable, decentralized control, secure identities and more rapid breach detection.
Forward-looking organizations will have carbon floor plans, but they will also balance blockchain with Ai and quantum-resistant encryption techniques with conventional security layers. Our focus is not on replacing cybersecurity systems, but on strengthening cybersecurity systems with trustless verification outside of striking distance. In 2025, that is essential as hackers will make attacks and espionage more complex than ever, while blockchain offers something reliable and powerful, transparency that cannot be faked.
Frequently Asked Questions About Blockchain-Based Cybersecurity Protocols
What does blockchain actually do for cybersecurity?
Blockchain keeps records in a shared digital ledger that no one can secretly change. It verifies every action through many computers, which makes data harder to tamper with.
Are blockchain cybersecurity systems expensive for enterprises?
At first, they can be costly because they require integration and new software. But over time, costs drop since there are fewer breaches and less manual auditing.
How does blockchain help in preventing ransomware?
Blockchain prevents tampering and records all activity. If an attacker tries to change a file, the blockchain record shows the exact time and user. It also helps restore clean versions faster.
Is blockchain useful for small companies too?
Yes, but large enterprises benefit the most because they manage complex supply chains and sensitive data. Smaller firms can use simpler blockchain tools for data logging or document verification.
What industries are leading in blockchain cybersecurity adoption?
Financial services, manufacturing, healthcare, and logistics are leading in 2025. These industries need strong auditability and traceable data protection.
Glossary
Blockchain: A decentralized record-keeping system that stores data in blocks linked chronologically.
Smart Contract: Code on a blockchain that runs automatically when certain rules are met.
Node: A computer that helps verify transactions in a blockchain network.
Permissioned Blockchain: A private blockchain where only approved members can join.
Decentralization: Distribution of control among many nodes instead of one central authority.
Immutable Ledger: A record that cannot be changed once added to the blockchain.
Quantum-Resistant Cryptography: Encryption designed to withstand attacks from quantum computers.
Threat Intelligence Ledger: A blockchain system for sharing verified cyber threat data across organizations.
Final Summary
By 2025, blockchain has become a serious tool for cybersecurity in enterprises. From supply chain tracking to digital identity management, it helps companies create trust that cannot be faked. It records every change in a transparent and permanent way, reducing insider risk and external manipulation.
However, blockchain should not replace existing cybersecurity layers. It should work alongside traditional systems, adding trust where it was missing before. As businesses prepare for more advanced digital threats, blockchain stands out as one of the best answers, a shared truth system that protects data even when everything else fails.
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